A disadvantage of variable life policies is that the cash value may actually decrease in value if stocks or other investments decline.

Name: A disadvantage of variable life policies is that the cash value may actually decrease in value if stocks or other investments decline.
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Question

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Variable life policies have a cash value that is tied to the performance of the policy's underlying investments, such as stocks or bonds. If these investments perform poorly, the cash value of the policy can decrease.

A Disadvantage of Variable Life Policies Is That the Cash