What is a characteristic of variable life insurance policies?

A characteristic of variable life insurance policies is that death benefits can exceed the guaranteed minimum. This is because variable life insurance is designed to allow policyholders to invest cash value in various investment options, such as stocks, bonds, or mutual funds. As a result, the cash value and the death benefit can increase based on the performance of these investments.

In variable life insurance, while there is often a guaranteed minimum death benefit, the actual death benefit can rise higher if the investments perform well. This potential for growth is a significant feature of variable life insurance, differentiating it from other types of permanent life insurance where the death benefit is typically more static.

Conversely, options that mention fluctuating premiums, guaranteed returns, or no accumulation of cash value do not accurately capture the fundamental characteristics of variable life insurance. Premiums in this category can vary based on the policyholder's choices and market performance, returns are not guaranteed as investments can rise and fall, and variable life insurance does accumulate cash value based on investment performance, unlike term insurance which provides no cash value.