What best describes a Variable Life Insurance policy?

A Variable Life Insurance policy is characterized by its flexibility in investment opportunities, allowing the policyholder to allocate the cash value among various investment options, such as stocks and bonds. This means that the cash value and the death benefit can fluctuate based on the performance of these investments.

Option B highlights that while there is variable cash value tied to the policy's investment performance, there is also a guaranteed minimum cash value. This guarantee provides the policyholder with a safety net, ensuring that even if the investments perform poorly, there is a minimum cash value that the policyholder can rely on. This characteristic is fundamental to variable life insurance, as it offers both investment potential and a layer of financial protection.

In contrast, other options do not accurately reflect the nature of Variable Life Insurance. A fixed premium with a guaranteed face value suggests a whole life policy or a similar structure, rather than the variable nature of the variable life policy. The assertion that the policy owner cannot choose investment stocks fails to acknowledge the foundational premise of variable products, which is that the policyholder has control over investment selections. Lastly, stating that there is no guaranteed minimum cash value would misrepresent the policy's structure, as the presence of a minimum cash value is a critical feature in providing some assurance to