Final answer:
If Rick chooses a variable benefit option for his variable universal life policy, the death benefit will typically fluctuate with changes in the policy's cash account value, which is influenced by the performance of the underlying investments. An increasing cash account due to investment gains can lead to a higher death benefit, while a declining cash account may cause the death benefit to decrease.
Option 'd' is the correct.
Step-by-step explanation:
When Rick owns a variable universal life policy and chooses a variable benefit option, the typical impact on the death benefit of this selection is that it will fluctuate with changes in the cash account.
Variable universal life insurance is a type of cash-value (whole) life insurance that combines death protection with a cash value component. The cash value is invested, and thus can grow or decrease depending on the performance of the investments chosen by the policyholder.
The death benefit in a variable universal life policy can vary because it is linked to the cash value of the policy. As the funds within the cash account grow due to investment gains, the death benefit may increase.
Conversely, if the investment does not perform well, and the cash account value declines, the death benefit can also decrease, unless there's a guaranteed minimum death benefit feature. However, this will depend on the specific terms and riders attached to the policy.
It is important to note that the premium payments in a variable universal life policy are not fixed and may be adjusted by the policyowner, within certain limits. High premium payments can lead to a growing cash account, which may cause the death benefit to increase, while low premium payments can cause the cash account to grow more slowly, potentially affecting the death benefit negatively.