Which of the following describes the cash values of a Variable Life Insurance policy?

The cash values of a Variable Life Insurance policy are tied to the performance of the underlying investments chosen by the policyholder. Unlike traditional life insurance policies that may offer guaranteed and fixed cash values, a Variable Life Insurance policy allows the policyholder to allocate the cash value among various investment options, such as stocks, bonds, or mutual funds. As a result, the cash value can increase or decrease based on the market performance of those investments. This mechanism provides the opportunity for growth but also comes with investment risk, meaning the cash value is subject to the fluctuations of the market. Hence, the correct characterization is that the cash values vary according to market performance.