What distinguishes variable life insurance from whole life insurance?

Variable life insurance is characterized by the ability to invest in various investment options, such as stocks, bonds, or mutual funds. This feature allows policyholders to allocate their premiums into different accounts, which can lead to varying amounts of cash values and death benefits based on the performance of these investments. This investment component provides the potential for growth that can exceed the guaranteed cash value typically found in whole life insurance policies.

In contrast, whole life insurance generally features guaranteed cash value accumulation and fixed premium payments, providing more predictability and stability for policyholders. Unlike variable life policies, whole life insurance does not offer the investment flexibility found in variable life insurance, making option B the distinct and correct choice. Additionally, whole life insurance does provide a death benefit, countering the suggestion found in one of the options regarding the absence of a death benefit.