What is a common feature of variable life insurance policies?

What is a common feature of variable life insurance policies?

• A. Guaranteed returns
• B. Flexible premiums
• C. Fixed death benefit
• D. Guaranteed insurability

Answer: (B)

Variable life insurance policies are known for their flexibility in premium payments. This means that policyholders have the option to adjust the amount and frequency of their premium payments within certain limits. This feature allows individuals to manage their costs according to their financial situations, which can vary over time. This flexibility contrasts with many traditional life insurance policies that often require fixed premiums to maintain coverage. In addition to flexible premiums, variable life insurance provides a cash value component that can be invested in various investment options, which affects the death benefit and cash value growth based on market performance. However, the flexibility of premium payments is a standout characteristic that distinguishes variable life insurance from more traditional forms of life insurance.

Variable life insurance policies are known for their flexibility in premium payments. This means that policyholders have the option to adjust the amount and frequency of their premium payments within certain limits. This feature allows individuals to manage their costs according to their financial situations, which can vary over time. This flexibility contrasts with many traditional life insurance policies that often require fixed premiums to maintain coverage.

In addition to flexible premiums, variable life insurance provides a cash value component that can be invested in various investment options, which affects the death benefit and cash value growth based on market performance. However, the flexibility of premium payments is a standout characteristic that distinguishes variable life insurance from more traditional forms of life insurance.