Explanation:
C is false. Variable life insurance is not a type of term life insurance. It is a type of whole life insurance in which the policyholder directs how the cash value is invested. The cash value and eventual payout can vary with investment performance, although there is typically a minimum death benefit.
Why the others are true:
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Q-702.3. There are many different life insurance products, including term, whole, variable, universal, variable-universal, and endowment. Each of the following definitions is correct EXCEPT which is false?
A
Whole life insurance lasts for the whole life of the policyholder, while term life insurance lasts a fixed period (e.g., five years or ten years)
B
Universal life insurance is a type of whole life insurance where the premium can be reduced to a specified minimum level without the policy lapsing
C
Variable life insurance is a type of term life insurance where the cash value grows at a variable interest rate; e.g., a variable index such as LIBOR plus a margin
D
Endowment life insurance lasts for a specified period and pays a lump sum either (i) when the policyholder dies or (ii) at the end of the period, whichever happens first