Final answer:
In a Variable Life insurance policy, the guaranteed elements are the death benefit and the premium, which means a minimum death benefit is assured and the premium remains level as long as policy conditions are met. The cash value and investment performance are not guaranteed, as they depend on the market performance of the investments chosen.
Step-by-step explanation:
Variable Life Insurance Policy Guarantees
A Variable Life insurance policy is a type of insurance that provides a combination of a death benefit and the opportunity to allocate cash value amounts to a variety of different investment options. What is guaranteed in a Variable Life insurance policy can cause confusion, so it's crucial to understand the policy features. In this type of policy, the premiums are typically not guaranteed, as they may vary based on the performance of the investment options. However, one of the key guarantees is the death benefit.
The proper answer to the question regarding what is guaranteed in a Variable Life insurance policy is B. The death benefit and premium. This means that the policy guarantees a minimum death benefit that will be paid to the beneficiaries as long as minimum premiums are paid and policy conditions are met. The investment performance or cash value are not guaranteed as they are tied to the market performance of the investment options chosen within the policy.
It is important to note that while the premium is fixed as per the policy terms, the cash value will fluctuate based on the success of the investments selected, and thus, unlike traditional whole life policies, the cash value in a Variable Life insurance policy is not guaranteed.