What Is Variable Term Life Insurance? 
Variable term life insurance ? Never heard of that ! You may be thinking of a variable ` premium ' or `` flexible premium '' life insurance . . ? As Peggy mentioned above , variable products have cash value and term policies do not . The `` variable '' component in those products is the amount of interest earned , because they are tied to investments in the stock market . A flexible premium life insurance would be a Universal Life policy , which is actually similar to a term policy where the cost of insurance goes up and once that exceeds what is being paid in premiums the sach value is consumed until there is no more insurance . There is such a thing as `` indexed '' universal Life , which is tied to a stock index and therefore the interest paid into the cash value will vary depending on the performance of the index . 