A variable insurance policy:

A variable insurance policy is designed to allow policyholders to allocate their premiums among various investment options within the policy, such as stocks, bonds, or money market funds. Because these investment options can fluctuate in value, the returns are not guaranteed. This characteristic aligns with the answer selected, indicating that the policy does not guarantee a return on investment accounts.

This means the value of the cash accumulation or death benefit can increase or decrease based on the performance of the chosen investments, making it critical for policyholders to be aware of the inherent risks involved in the variable insurance option. Understanding this aspect is crucial, as it differentiates variable policies from traditional forms of life insurance that offer more stable, guaranteed returns. The nature of variable insurance emphasizes growth potential alongside risks, unlike fixed insurance policies that provide guaranteed returns and more predictable outcomes.