Final answer:
The life policy with a monthly mortality charge and self-directed investment choices is Variable life insurance, which allows investments in options like stocks and mutual funds, differentiating it from other life policies.
Step-by-step explanation:
The type of life policy that contains a monthly mortality charge as well as self-directed investment choices is c) Variable life insurance. Unlike whole life and universal life policies, variable life insurance allows the policyholder to invest the cash value in various investment options, which can include stocks, bonds, and mutual funds. This means that the cash value and the death benefit can fluctuate based on the performance of the investments chosen by the policyholder. However, this type of policy also includes the risk of investment losses, which can lower the cash value and potentially the death benefit.
Cash-value (whole) life insurance, such as whole life and universal life, offers both a death benefit and a cash value component, wherein the accumulated amount serves as an account for the policyholder's use and can gain interest over time. However, these do not typically offer self-directed investment choices as part of their structure.