Variable life insurance is a good option for you if you are willing to take a certain amount of risk. Money paid into this kind of policy is reinvested and managed by your insurer. If the investments perform well, your equity will grow so your beneficiary (wife, child, cat, charity) will receive a big payout in the event of your passing away. Of course, if the investments perform badly, then you will lose equity. Although there is generally a minimum amount that the insurer commits to paying out, your benefit may end up being lower than the total premiums paid in.

Since equity is not taxable until the policy is surrendered, you can grow your equity through a whole portfolio of investments offered by your insurer, and you won't pay tax on earnings until the benefit is paid out. Most policies also offer interest on equity, which will further increase your earnings.

Premiums on variable life insurance are usually quite high, so you probably wouldn't consider this type of life insurance if you don't have a steady (high) income. Variable life insurance can compliment a more secure life insurance policy such as a whole life insurance quite well, as it offers the potential to earn a much higher benefit than you could get with any other type of insurance. If investments fail, you'll be glad to have a backup plan.