Final answer:
The death benefit in a variable universal life insurance policy with a variable death benefit option will fluctuate depending on the performance of the investments tied to the policy's cash value.
Step-by-step explanation:
If Rick owns a variable universal life insurance policy and chooses a variable death benefit option, then the typical result is that the death benefit will fluctuate with changes in the cash value amount of the policy. This is because variable universal life insurance is a type of permanent life insurance that has an investment component, where the cash value and the death benefit are not fixed and can vary based on the performance of investments chosen by the policyholder.
The correct answer to the question is D. Fluctuate with changes in the cash amount. The death benefit in a variable life insurance policy changes to reflect the performance of the underlying investments of the cash value. If the investments perform well, the death benefit may increase. Conversely, if the investments perform poorly, the death benefit may decrease, subject to any guaranteed minimum death benefits specified in the policy.