What can affect the overall performance and growth of a Variable Life Insurance policy’s cash value?

The overall performance and growth of a Variable Life Insurance policy’s cash value is primarily influenced by the performance of the underlying investments chosen by the policyholder. In a Variable Life Insurance policy, the cash value is linked directly to investment options that the policyholder selects, such as mutual funds, stocks, or bonds. Therefore, if these investments perform well, the cash value can increase significantly. Conversely, if the investments perform poorly, the cash value may decrease. This inherent linkage means that the policyholder's choice of investments is crucial to the financial growth of the policy.

The other options do not directly impact the cash value's performance and growth in the same way. The payment method of premiums may affect how quickly the policy accumulates value but does not influence the investment performance itself. The timing of the policyholder's application could have more to do with the initial cost and age of the policyholder than with ongoing growth. Lastly, beneficiary designations, while important for determining who receives the death benefit, have no bearing on the cash value's investment performance. Hence, the significant factor that affects the growth of the policy's cash value is indeed the performance of the investments selected by the policyholder.