What components are included in a Variable Life Insurance policy?

In a Variable Life Insurance policy, the key components include a death benefit, cash value, premiums, and investment choices, which is why the selected answer is the most accurate representation of what makes up this type of insurance.

The death benefit is the amount that will be paid to the beneficiaries upon the insured's death, providing the primary purpose of life insurance. The cash value accumulates over time and can be accessed via loans or withdrawals, allowing policyholders some financial flexibility. Premiums are the payments made to keep the policy active, and investment choices empower policyholders to invest in various funds, potentially influencing the growth of the cash value and the overall performance of the policy.

The other options do not capture the full scope of what a Variable Life policy entails. For example, while a maximum loan value is an aspect of loans against the policy, it does not encompass the full range of features. Fixed premiums and guaranteed interest are characteristics more aligned with whole life insurance, not variable life policies, which typically offer flexible premium payments and investment components. Lastly, limiting the description to just investment returns and insurance coverage overlooks the importance of cash value and premiums, which are integral to the policy's function and benefits.