A life insurance policy that contains cash values varying according to stocks' performance is called?

The life insurance policy that contains cash values varying according to stocks' performance is referred to as Variable Whole Life insurance. This type of policy provides policyholders with the flexibility to allocate a portion of their premiums into a variety of separate accounts, similar to mutual funds, which can include stock market investments. As the performance of these chosen investments fluctuates, the cash value of the policy can increase or decrease correspondingly.

This characteristic allows policyholders to potentially benefit from market upswings, leading to a dynamic cash value growth, which can be a major advantage compared to traditional whole life policies where the cash value grows at a guaranteed rate. Additionally, Variable Whole Life policies offer the lifelong coverage similar to whole life insurance, along with the investment component that is not present in some other policy types.

In contrast, the other options mentioned are not designed to have cash values tied directly to stock performance. Increasing term life, for example, is a term insurance product that provides a death benefit that increases over time but does not accumulate cash value. Modified whole life policies typically have reduced premiums early on but do not link cash values to stock performance. Adjustable whole life gives policyholders some flexibility in premium payments and death benefits but does not offer the investment component tied to stock market