Oklahoma Life Producer Practice Exam 2025 – All-in-One Resource to Master Your Certification

A characteristic that distinguishes a "variable life insurance" policy is the ability for policyholders to participate in the investment performance of the cash value. This type of insurance product combines a death benefit with a cash value component that can be allocated to a variety of investment options, such as stocks, bonds, or mutual funds. Because the cash value is tied to the performance of these investments, it can grow at varying rates, often resulting in the potential for higher returns compared to traditional whole life insurance policies, which typically have a fixed cash value growth.

This ability to invest in different assets introduces a flexible approach to managing both the death benefit and the cash value components of the policy. As a result, policyholders have the opportunity to increase the value of their investment based on market performance, ultimately impacting the available cash value and potentially the death benefit amount, depending on how the investments perform over time.