Which of the following is a feature of variable life insurance?

Variable life insurance is designed to provide policyholders with flexibility and the opportunity for cash value growth that is tied to investment performance. One of its defining features is that the investment values fluctuate based on the performance of the underlying assets chosen by the policyholder. This means that the cash value of the policy can increase or decrease depending on market conditions and the performance of the investments selected.

The ability to choose from various investment options allows policyholders to potentially achieve higher returns but also carries the risk of losses, reflecting the variable nature of this type of insurance. As such, the cash value and potentially the death benefit can vary, depending on how well those investments perform.

In contrast, the other options describe features not characteristic of variable life insurance. For instance, a fixed sum assured without market influence indicates a whole life policy rather than variable. Furthermore, the guaranteed dividend payouts and standard returns on premiums suggest more traditional insurance products that focus on stability and predictable returns, which do not apply to the variable nature of variable life insurance.