Health and Life Insurance

Answer: C - A flexible premium, adjustable benefit life insurance contract that accumulates cash values is called a variable life insurance policy. The variable life insurance policy is designed to protect both the policy owner and the beneficiary from inflation and loss of the life insurance policy amount. The variable life insurance policy hedges against inflation by using separate accounts established by the insurers consisting of a portfolio on common stock and securities based investments. These separate accounts support the life insurance benefits of flexible premium, adjustable benefit life insurance.