A comparison of variable life insurance to a standard whole life plan would reveal that
A) they are essentially identical.
B) variable life offers only pure insurance but does so at a very low cost, while a standard whole life plan costs more but offers both insurance and a savings plan.
C) both a standard whole life and variable life insurance offer both life insurance and savings, but variable life invests the savings more aggressively than whole life.
D) variable life is only available to people who want at least $1 million in coverage-and are willing to pay for it.

Question

Quizplus · Accepted Answer

Variable life is a variation of whole life that invests savings more aggressively than do ordinary whole life plans. This can lead to higher returns on saving, but is a riskier strategy that could result in a variation in the death benefit.

A Comparison of Variable Life Insurance to a Standard Whole