Which statement best describes Variable Whole Life Insurance?

• A. It requires a securities license to sell
• B. It never has a level premium
• C. It provides a guaranteed minimum death benefit
• D. It guarantees a fixed rate of cash value growth

Answer: (C)

Variable Whole Life Insurance blends life protection with cash value that is invested in separate accounts. The standout feature is a guaranteed minimum death benefit, meaning the policy will pay at least the face amount to beneficiaries as long as premiums are paid, even if the investments perform poorly. The cash value can go up or down based on market performance and is not guaranteed to grow at a fixed rate. Premiums are typically level. So, the statement about providing a guaranteed minimum death benefit best describes this product. The cash value isn’t guaranteed to grow at a fixed rate, and while selling this type of policy often involves securities licensing, that aspect isn’t the defining feature of the product itself.