Final answer:
For Rudy and Ozlem, who are risk-averse and want stable returns, a whole life insurance policy is the best option as it provides a guaranteed death benefit and a cash value component that grows steadily, without the volatility associated with other types of life insurance.
Step-by-step explanation:
Rudy and Ozlem, being extremely risk-averse and disliking volatility in their returns, would likely prefer a whole life insurance policy. This type of insurance policy provides a guaranteed death benefit as well as a cash value component that accumulates over time which can be borrowed against or withdrawn. Unlike variable life insurance, which involves investment in various assets that can fluctuate in value, or universal life insurance, which offers flexible premiums but also contains market risk, whole life insurance offers a stable and predictable form of cash-value life insurance without exposure to market risks. Therefore, whole life insurance would be most aligned with their priorities.