Which of the following is a characteristic of a variable life insurance policy?

A variable life insurance policy is characterized by flexible premiums and a cash value that is directly linked to the performance of investments chosen by the policyholder, such as stocks and mutual funds. This means that policyholders have the ability to adjust their premiums and investment choices, allowing them to potentially increase the cash value and death benefit depending on how well the investments perform.

Unlike traditional life insurance products, which have guaranteed cash values and fixed premiums, variable life insurance offers the opportunity for growth based on market conditions, although it also comes with higher risks. This inherent flexibility is an essential aspect of variable life policies, distinguishing them from more conservative products that provide certainty in terms of premiums and returns.