Which statement accurately describes "variable life insurance"?

The statement that variable life insurance is a permanent life insurance product where the cash value can be invested in various options is accurate for several reasons.

Variable life insurance is designed to provide not only a death benefit but also a savings component that builds cash value over time. Policyholders have the flexibility to allocate the cash value among different investment options, which may include stocks, bonds, mutual funds, and money market accounts. This investment potential allows the cash value to grow based on market performance, which can potentially lead to greater returns compared to traditional whole life insurance policies, where the growth is typically fixed.

Additionally, because it is a permanent life insurance policy, variable life insurance remains in effect for the lifetime of the insured, provided that premiums are paid. This differentiates it from term life insurance, which only offers coverage for a specific period without accumulating cash value.

In summary, the ability to invest the cash value in varying options for potentially higher returns is a hallmark of variable life insurance, aligning perfectly with the characteristics that define this type of policy.