Final answer:
The correct answer is A. The cash value in the policy is not guaranteed.
Step-by-step explanation:
Variable Life insurance policies are complex products with investment components that can lead to varying cash value amounts. The cash value in the policy is not guaranteed, as it is tied to the performance of the investment options chosen by the policyholder. Unlike traditional whole life policies that have a guaranteed cash value accumulation, the cash value in a variable life policy can increase or decrease based on market conditions.
Premiums for variable life insurance policies are typically fixed and not variable. While traditional whole life policies offer a fixed interest rate paid on the cash value, variable policies do not have a fixed rate as the return depends on the investments' performance. Lastly, the death benefit in a variable life insurance policy has a minimum guaranteed amount, but it may increase over time based on the performance of the policy's cash value investments.