A Single Premium Variable Life insurance policy:

A Single Premium Variable Life insurance policy is designed to provide a death benefit while also allowing for investment opportunities through various sub-accounts. When such a policy is issued, it inherently includes a minimum death benefit. This minimum ensures that, regardless of the performance of the underlying investments, there is a guaranteed amount that will be paid out to the beneficiary upon the insured's death. This characteristic is a fundamental aspect of life insurance policies, differentiating them from pure investment products.

The policy's structure means that while the investment component can fluctuate in value based on market performance, the presence of a required minimum death benefit protects the interests of the policyholder and their beneficiaries. This is critical for policyholders who desire both investment growth and the security of a death benefit. The minimum death benefit is a necessary feature of these policies, making the first choice the correct one.