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Subaccount Allocation

Subaccount Allocation in a variable life insurance policy refers to the process of dividing cash value among different investment options. Policyholders can allocate funds to subaccounts like equity or bond funds, based on their financial goals and risk tolerance.

This allocation affects the policy’s growth potential and volatility. It’s a hands-on approach to managing cash value, ideal for those who want to actively influence their policy’s performance.