Which of the following is a distinguishing feature of a variable life insurance policy?

A distinguishing feature of a variable life insurance policy is that the cash value earnings are based on the performance of the separate account. This means that the policyholder's cash value and potentially the death benefit can fluctuate depending on the performance of the investment options chosen within the separate account, which can include stocks, bonds, and mutual funds.

Variable life insurance allows the policyholder to allocate their premiums among various investment options, giving them the potential for higher returns compared to whole life policies, where cash value grows at a set rate. However, this comes with increased risk, as the performance of these investments can vary, leading to potential increases or decreases in the policy's cash value and death benefit depending on market conditions. This feature makes variable life insurance distinct from other life insurance types where benefits or cash values are guaranteed and less directly tied to market performance.