What are variable life and variable annuity products?

Variable life and variable annuity products are a type of insurance that combines features of both life insurance and investment components. Specifically, they are designed to provide a death benefit and also allow the policyholder to invest in various underlying assets, which can lead to fluctuations in both the cash value and death benefit based on the performance of these investments.

In this context, option C correctly identifies that these products fall under variable life insurance contracts, which actively seek to provide policyholders with both insurance coverage and the opportunity to grow their investment over time. This dual function is a significant differentiator of variable life and annuity products compared to traditional fixed insurance products, which do not offer such investment flexibility or variable returns based on market performance.

The other choices do not accurately represent the nature of variable life and variable annuity products, as they either limit the types of coverage or incorrectly categorize the nature of these financial instruments. Understanding variable products involves recognizing their unique blend of insurance and investment, which option C effectively highlights.