Which of the following statements is incorrect in case of variable insurance plans?

A. Cash value is not guaranteed

B. Minimum death benefit is guaranteed in variable insurance plans

C. Where to keep the money invested is the decision of the policyholder

D. Flexible premium payments are allowed in such policies

Answer: Option B

Solution(By Examveda Team)

This policy is quite risky because your cash value and death benefit can fluctuate according to the performance of your investment portfolio. Therefore, if your underlying investments perform well, then your cash value and death benefit may increase accordingly. If your investments perform worse than you expected, your cash value and death benefit may decrease.