Variable life insurance policies have the flexibility to do which of the following?

Variable life insurance policies are designed to provide both life insurance protection and an investment component that can grow over time. One of the key features of these policies is the ability to change the investment allocations periodically. This means that policyholders can choose how their cash value is invested among a range of available investment options, such as stocks, bonds, and mutual funds, depending on their financial goals and risk tolerance. By periodically adjusting their investment allocations, policyholders can respond to market conditions and potentially optimize their returns.

The other options mentioned have limitations or specific conditions attached. While death benefits can often be adjusted, this generally requires a formal change request and may be subject to underwriting conditions. Changing premium payments is usually allowed within certain limits defined by the policy, but there may be constraints on how much or how often changes can occur. Similarly, withdrawing cash value can lead to tax implications or penalties depending on the timing and amount withdrawn, especially if the policy has not been in force for a certain period. Therefore, the flexibility to change investment allocations regularly is a hallmark of variable life insurance policies, making it the most accurate choice in this context.