Final answer:
Variable universal life insurance (Option B) allows the policyholder to direct where the cash value will be invested, providing flexibility and potential for higher returns on investment. However, it also comes with higher risk. The correct answer is option b.
Step-by-step explanation:
Variable universal life insurance (Option B) is the type of life insurance policy that allows the policyholder to direct where the cash value will be invested.
This type of policy provides a death benefit as well as a cash value component, which can be invested in a variety of financial instruments such as stocks, bonds, and mutual funds. The policyholder has control over how the cash value is allocated among these different investment options.
This flexibility allows the policyholder to potentially earn higher returns on their investment, but it also comes with higher risk compared to other types of life insurance policies.