Which of the following factors does NOT affect the cash value of a Variable Life insurance policy?

The cash value of a Variable Life insurance policy is influenced by several internal and external factors directly related to the policy and its management.

Investment performance of the chosen funds is critical because the cash value is tied to the performance of the investment options selected by the policyholder. If the investments do well, the cash value increases, and conversely, if they perform poorly, the cash value decreases.

The amount of premiums paid directly impacts the cash value as well. When policyholders pay higher premiums, a portion of that additional money is allocated to the cash value, enhancing its growth over time.

Administrative fees charged by the insurer are also significant contributors to changes in cash value. These fees are deducted from the cash value and can diminish the overall amount available to the policyholder.

In contrast, fixed interest global economic trends over time do not directly influence the cash value of a Variable Life insurance policy. While economic trends can affect investment performance generally, the cash value itself is impacted primarily by the specified fund performance, premiums paid, and administrative expenses. Thus, this option is distinct as it does not have a direct effect on the cash value, making it the correct answer.