Which type of life insurance contracts has cash values that accumulate based on a portfolio of stocks without guarantees of performance?

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The idea being tested is how cash value can be tied to investments rather than guarantees. In variable life insurance products, the cash value is allocated to separate investment accounts that invest in stocks and other securities. Because these are market-based investments, there are no guarantees on how they will perform—the cash value can rise or fall with market returns, and the policyholder assumes the investment risk. This contrasts with other types that promise guaranteed cash-value growth at set rates or that don’t rely on market performance at all. So the correct choice describes a product where cash value depends on a stock-based portfolio with no guaranteed performance.