Which of the following are characteristics of Variable Life insurance policies?

Variable Life insurance policies are designed to provide both investment and protection benefits, making them unique in the realm of life insurance. These policies allow policyholders to allocate a portion of their premiums to various investment options, such as stocks or bonds, which can lead to the growth of cash value over time. In contrast to traditional life insurance, where the premium and benefit amounts are fixed, Variable Life balances protection and investment potential, allowing for the cash value and death benefit to fluctuate based on the performance of the chosen investment options.

The ability to invest and potentially earn higher returns is a key attraction of Variable Life insurance, as it offers more flexibility and the opportunity for policyholders to take an active role in managing their cash value growth. This combination of life insurance protection and investment opportunity aligns with the understanding of variable policies, which aim to meet both immediate and long-term financial goals.