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With Variable Life Insurance, the Term "Variable" Refers to the Variable

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With variable life insurance, the term "variable" refers to the variable nature of the benefit because premium payments are invested in mutual funds whose return can vary over time.


Definitions:

Call Option

A financial contract giving the buyer the right but not the obligation to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Time To Expiration

The duration until the expiry date of a financial instrument, such as an option or futures contract.

Real Goods

Physical, tangible products and commodities that can be used, consumed, or sold.

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