Under what condition may the minimum death benefit in variable life be guaranteed?

Under what condition may the minimum death benefit in variable life be guaranteed?

• A. Premiums are reduced periodically.
• B. The policy remains in force until maturity.
• C. The death benefit is fixed at issue and never changes.
• D. Premiums are maintained.

Answer: (D)

The guaranteed minimum death benefit in variable life is kept as long as the policy stays in force and premiums are paid. When you maintain the premium payments, the insurer covers the policy charges and keeps the minimum floor in place, even if the cash value’s investment results swing up or down. If premiums aren’t kept up, the policy can lapse or be funded at a lower level, and the guaranteed minimum may no longer apply. The other options don’t establish the required funding condition: reducing premiums doesn’t preserve the guarantee, a maturity date isn’t how variable life guarantees work, and having the death benefit fixed at issue describes a fixed feature rather than the ongoing funding condition that preserves the minimum.

The guaranteed minimum death benefit in variable life is kept as long as the policy stays in force and premiums are paid. When you maintain the premium payments, the insurer covers the policy charges and keeps the minimum floor in place, even if the cash value’s investment results swing up or down. If premiums aren’t kept up, the policy can lapse or be funded at a lower level, and the guaranteed minimum may no longer apply. The other options don’t establish the required funding condition: reducing premiums doesn’t preserve the guarantee, a maturity date isn’t how variable life guarantees work, and having the death benefit fixed at issue describes a fixed feature rather than the ongoing funding condition that preserves the minimum.