Which type of life insurance might have benefits that vary in amount?

Variable life insurance is a type of permanent life insurance that offers a death benefit and a cash value component, where the cash value can be invested in various investment options, such as stocks and bonds. This means that the value of the policy can fluctuate based on the performance of these investments. Consequently, both the cash value of the policy and the death benefit can vary, depending on how well the investments perform. This characteristic allows policyholders to potentially accumulate more cash value over time, but it also introduces a level of risk since poor investment choices could lead to a lower cash value and death benefit.

In contrast, term life insurance provides coverage for a specified period and does not have a cash value component, so its benefits remain fixed during the term period. Whole life insurance guarantees a fixed death benefit and typically a guaranteed cash value that grows at a predetermined rate, providing stability but lacking variability. Universal life insurance does give some flexibility in premium payments and death benefit amounts but still operates within a set framework that limits variability compared to variable life insurance. Thus, for policies where benefits can fluctuate based on investment performance, variable life insurance is the correct answer.