Final answer:
The true statement about a Universal Variable life insurance policy is that it is a securities and investment product. These policies offer flexible premiums, investments in securities, and potential cash value growth.
Step-by-step explanation:
The correct answer to which statement is true regarding a Universal Variable life insurance policy is that it is a securities and investment product. Universal Variable life insurance policies offer both death benefits and an investment feature. The premiums paid above the cost of insurance charge are credited to the cash value. This cash value is invested in a variety of available investment options, which can include stocks, bonds, and money market accounts. These options have the potential to grow over time, subject to market risks, which makes it an investment product. However, because these investment option components are tied to securities, the product must also be considered a securities product. Therefore, the correct answer is B. It is a securities and investment product.
Unlike option C, Universal Variable life insurance policies do not have fixed premiums; instead, the premium payments can be adjusted within certain limits as determined by the policy owner. This flexibility is one of the key features of this type of life insurance, which differentiates it from the traditional whole life or term policies that typically feature fixed premiums.