Final answer:
The death benefit in Variable Life Insurance can indeed vary above the minimum guaranteed benefit, depending on the performance of the policy's invested cash value. This offers both life insurance coverage and the opportunity for investment growth.
Step-by-step explanation:
Yes, the death benefit in Variable Life Insurance can vary above the minimum guaranteed death benefit. Variable Life Insurance is a type of cash-value (whole) life insurance product that combines life protection with a cash value component that is invested, offering the potential for higher returns, which can lead to a higher death benefit. As the investments in the policy's cash value account grow, the death benefit may increase, provided that the investments perform well.
If the investments perform well, the death benefit will increase above the minimum guaranteed amount; however, if the investments underperform, the death benefit will not fall below the guaranteed minimum, protecting the policyholder's beneficiaries. This offers a dual advantage of life insurance protection and investment growth potential, making Variable Life Insurance a unique financial planning tool.