New Jersey Life Producer Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

A variable life insurance policy typically pays out to beneficiaries at the death of the policyholder. This is a fundamental feature of life insurance products: they are designed to provide a death benefit to the designated beneficiaries upon the insured's passing. Variable life insurance not only offers a death benefit but also includes a cash value component that can be invested in various investment options, leading to a variable return, hence the name “variable.”

This payout occurs regardless of whether the policyholder has reached retirement age or has surrendered the policy. The death benefit is available as soon as the event of death occurs, assuming the policy is in force and premiums have been paid as required. The one-year waiting period mentioned in another option is not a standard provision in variable life insurance policies; such waiting periods are generally associated with specific types of policies or conditions, but not typically for beneficiaries receiving death benefits.