Variable Life
Which death benefit option in variable life will provide the LARGEST payout if cash value has grown substantially?
Option B (increasing death benefit) pays the face amount PLUS cash value, resulting in a larger benefit when cash value grows.
Complete Analysis & Legal Rationale
Option B (increasing death benefit) pays the face amount PLUS cash value, resulting in a larger benefit when cash value grows.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Governs options accounts, approvals, and related supervisory requirements (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.