The correct answer is D. Minimum Death benefit is guaranteed.
Variable life insurance is a type of permanent life insurance that allows the policy owner to choose how the cash value is invested. The policy owner can choose from a variety of investment options, such as stocks, bonds, and mutual funds. The cash value of a variable life insurance policy is not guaranteed, and it can fluctuate based on the performance of the underlying investments.
A variable life insurance policy has a minimum death benefit, which is the amount that will be paid to the beneficiary if the insured dies during the policy term. The minimum death benefit is typically guaranteed by the insurance company, and it will not fluctuate based on the performance of the underlying investments.
The other options are all characteristics of variable life insurance.
- Flexible premium payments: Variable life insurance policies allow the policy owner to make flexible premium payments. The policy owner can choose to make monthly, quarterly, semi-annual, or annual payments. The policy owner can also choose to skip payments or make larger payments if they are able to do so.
- Cash value is not guaranteed: The cash value of a variable life insurance policy is not guaranteed. The cash value of the policy will fluctuate based on the performance of the underlying investments.
- Policy owner selects where savings reserve is invested: The policy owner of a variable life insurance policy selects where the savings reserve is invested. The policy owner can choose from a variety of investment options, such as stocks, bonds, and mutual funds.
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