Which of the following best describes the "death benefit" in variable life insurance?

In variable life insurance, the death benefit serves as a financial protection mechanism for the beneficiaries upon the death of the insured. The best description of the death benefit is that it is typically higher than the cash value. This is because the death benefit is designed to provide a significant payout to beneficiaries, reflecting the primary purpose of life insurance, which is to provide financial security in the event of the insured's death.

The death benefit amount can include the base policy amount and potentially grow based on the performance of the investments within the policy. However, this growth is distinct from the cash value accumulation, which is a separate component that reflects the value built up over time from premiums paid.

Understanding that the death benefit is generally more substantial than the cash value is crucial, as it emphasizes the primary function of providing comprehensive life coverage. This distinction helps policyholders appreciate the role and value of the insurance in terms of beneficiary protection versus the savings or investment component of the policy.