What determines the cash value of a variable life policy?

The cash value of a variable life insurance policy is determined by the performance of the investment options chosen by the policyholder, such as stocks, bonds, or mutual funds. Premium payments contribute to the cash value, but the amount that accumulates can fluctuate based on the market performance of these investments. Additionally, fees and expenses associated with the policy can affect the cash value over time. Ultimately, the cash value reflects both the investment returns and the costs incurred throughout the policy's life.