What defines a variable life policy and how are the cash value and death benefit determined?

• A. Cash value is fixed and guaranteed; death benefit is fixed.
• B. In variable life, cash value and sometimes death benefit depend on the performance of separate accounts chosen by the policyowner; investment risk is borne by the owner.
• C. Cash value is determined by insurer's general account; death benefit is determined by premium.
• D. It has no death benefit.

Answer: (B)