What is a defining feature of a variable life insurance policy?

A defining feature of a variable life insurance policy is that it provides variable death benefits. This means that the amount payable upon the policyholder's death is not fixed but rather fluctuates based on the performance of the investments chosen by the policyholder. In a variable life policy, the cash value and death benefit can vary significantly, allowing policyholders to potentially increase their benefits based on market performance.

In contrast, fixed premiums are characteristic of different types of life insurance policies, not typically of variable life insurance where premiums can be flexible. Guaranteed cash value, while a feature of whole life or universal life policies, is not a defining aspect of variable life policies, where cash value can also fluctuate and is not guaranteed. Set maturity dates are generally associated with term life insurance rather than variable life products, as variable life policies typically do not have a fixed duration. Thus, the variability in death benefits is what uniquely defines a variable life insurance policy.