Reacting to the increasing fear of inflation in the United States, the U.S. life insurance industry is about to start selling a new product-variable life insurance. The variable life insurance designs which have been discussed so far suggest that the new policies will be fairly complex, and may be hard to promote in spite of the need for inflation protection. Variable life contracts have been offered in the Netherlands since 1966, and the market acceptance of the product appears to be limited. Four major reasons are offered to account for the poor acceptance of variable life insurance in the Netherlands: (1) Lack of promotion by sales agents, (2) Investment growth which was only average, (3) Existence of a somewhat limited market for the contract, and (4) Inadequate profit margins on variable life policies. Guidelines are offered, based upon the Dutch experience, for U.S. insurers selling variable life insurance policies. Life insurance managers in the United States are about to launch a much-discussed, new life insurance product-the variable life insurance policy. In January, 1973, the Securities and Exchange Commission cleared the way for the sale of individual policies, and many large insurers are planning to sell the contract.' However, such policies have been offered in the Netherlands since 1966, and indications are that sales have been somewhat short of spectacular in that country. It is the purpose of this article to review the experience of one Dutch insurer with variable life insurance for the lessons it may have in this country.