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Um... Net death benefit = cash values + net amount at risk - any outstanding loans.
The cash values of the policy IS invested in the reserve, and by definition, is used to satisfy claims. Where else would the net amount at risk come from?
And technically speaking, the cash values belong to the insurance company, but the policy holder has access to them. If accessed, death benefits are reduced by the loan or withdrawal of the cash values. Until borrowed or withdrawn, they belong to the insurance company as the reserve for the given death benefit.
If you will remember, separate accounts exist in their own little world. They cannot be accessed by creditors of the company like the general account can. And please remember, these are separate accounts, variable products.