Which one of the following is a life insurance policy that will provide a fixed death benefit and allows the policyholder to choose where to invest the policy's cash value?

Question

Quizplus · Accepted Answer

Variable life insurance allows the policyholder to invest the policy's cash value in various investment options, such as stocks, bonds, and mutual funds. The death benefit is fixed, but the cash value can potentially grow depending on the performance of the chosen investments. Term life insurance only provides coverage for a specified period and does not accumulate any cash value. Whole life insurance provides a fixed death benefit and invests the policy's cash value in low-risk options, but the policyholder does not have control over the investments. Industrial life insurance is a type of whole life insurance that provides small death benefits and is typically sold to lower-income individuals.

Which One of the Following Is a Life Insurance Policy