what is variable insurance trust?

Answer 1

I think you are confusing the two terms of a "trust" and a insurance policy within a trust.

Variable Life Insurance Policy
A form of whole life insurance, variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the most expensive type of cash-value insurance because it allows you to allocate a portion of your premium dollars to a separate account comprised of various instruments and investment funds within the insurance company's portfolio such stocks, bonds, equity funds, money market funds and bond funds. In addition, because of investment risks, variable policies are considered securities contracts and are regulated under the federal securities laws; therefore, they must be sold with a prospectus.

The major advantage to variable policies is that they allow you to participate in various types of investment options while not being taxed on your earnings (until you surrender the policy). You can also apply the interest earned on these investments toward the premiums, potentially lowering the amount you pay. However, due to investment risks, when the invested funds perform poorly, less money is available to pay the premiums, meaning that you may have to pay more than you can afford to keep the policy in force. Poor fund performance also means that the cash and/or death benefit may decline, though never below a defined level. Also, you cannot withdraw from the cash value during your lifetime.

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Answer 2

Variable Insurance Trust

Answer 3

Variable insurance trusts ("VITs") are also know as unaffiliated mutual funds, which are unregistered funds of funds used by investment companies as hedge funds to conduct self-hedging strategies. Prudential Financial Companies uses VITs and unregistered funds (or mispriced "junk bonds") as hedged equity to conduct paired trades between Prudential and VA customers. When the market declines, Prudential uses unregistered "junk bonds" to buy in PRU mutual funds at lower prices from VA customers for VITs and pays VA customers with mispriced "junk bonds". When the market improves, Prudential sells embezzled PRU mutual funds at higher prices back to such VA customers and takes mispriced "junk bonds" back from VA customers. Prudential uses the imparities between PRU mutual funds and mispriced "junk bonds" to steal market gains of VA customers, which are distributed as bonus to Prudential executives, dividends to PRU shareholders, and capital to support Prudential guarantees for Prudential Retirement Plans..