Can the death benefit of a Variable Life policy be adjusted?

In a Variable Life Insurance policy, one of the distinguishing features is the flexibility it offers in terms of the death benefit. The correct answer indicates that the death benefit can often be adjusted, allowing policyholders to increase or decrease it based on their changing needs and circumstances.

This flexibility is a key characteristic of Variable Life policies, which typically allow policyholders to customize their coverage. For instance, if someone’s financial situation improves, they may choose to increase the death benefit to provide additional security for their beneficiaries. Conversely, if there is a need to reduce premiums, the death benefit may sometimes be decreased to adjust the policy's cost and maintain affordability.

The ability to adjust the death benefit also links to the performance of the investment options within the policy. As the cash value grows or diminishes with market performance, these changes can influence the decisions surrounding the death benefit, providing policyholders with options that align with their financial strategies.

The other choices imply conditions that do not accurately represent the characteristic flexibility offered by Variable Life policies, reinforcing why the ability to adjust the death benefit is an essential aspect of these types of insurance.