What is the primary reason for choosing a variable whole life policy over a traditional whole life policy?

Choosing a variable whole life policy over a traditional whole life policy primarily centers around the potential for a higher return on cash value. This type of policy allows the policyholder to invest the cash value in various investment options, such as stocks and bonds. Since the cash value of a variable whole life policy is tied to the performance of these investments, there is the potential for growth that can outpace the guarantees found in a traditional whole life policy.

In contrast, traditional whole life policies typically have a guaranteed cash value and a fixed premium structure, which provides stability but might not offer the same level of growth potential. The investments in traditional policies are more conservative, resulting in lower returns compared to the potential offered by variable life policies. This appeal of higher potential returns makes variable whole life insurance attractive to those willing to take on some investment risk for the possibility of greater rewards.