What are the main characteristics of variable life policies?

Variable life policies are designed to provide both life insurance coverage and the potential for investment growth. This dual function is a defining characteristic of these policies. Unlike traditional life insurance that primarily focuses on providing a death benefit, variable life insurance allows policyholders to allocate a portion of their premium towards various investment options such as stocks and bonds. Consequently, the cash value and death benefit can fluctuate based on the performance of these investments.

In contrast to the other options, variable life policies do indeed offer investment and savings benefits by allowing the insured to invest their cash value in different investment vehicles. Additionally, while some policies may impose restrictions on withdrawals, many variable life insurance products do allow access to cash values through loans or withdrawals before maturity. Lastly, they do not guarantee fixed growth rates, as the cash value is subject to market performance and can increase or decrease depending on investment returns.

Therefore, the key feature of variable life policies encapsulated in the correct answer speaks to the combination of life insurance protection along with the opportunity for investment growth, making them a unique choice in the realm of life insurance products.