A Variable Life Insurance Policy Is Considered Riskier Than a Traditional

Multiple Choice

A variable life insurance policy is considered riskier than a traditional whole life policy because it:

A) invests savings more aggressively in securities that are riskier but offer higher potential returns.
B) has no disability provision to waive premiums in the event of a serious accident or prolonged illness.
C) may not allow the holder to renew the policy after the initial five year period has elapsed.
D) pays only a very small death benefit unless the policy holder lives for at least 12 years after taking out the policy.