Which of these characteristic changes can occur in interest-sensitive whole life policies?

Interest-sensitive whole life policies are designed to provide a death benefit and build cash value, with elements that respond to changing interest rates and market conditions. The key feature of these policies is that they offer the potential for higher returns on the cash value component based on current interest rates, which can fluctuate due to market performance.

When interest rates increase, policyholders may see higher interest credits applied to their cash value, reflecting the higher returns that insurers are able to achieve in the market. Conversely, if market rates drop, this can also impact how interest is credited to the cash value. Therefore, one of the distinguishing characteristics of interest-sensitive whole life policies is the ability to adjust the premiums or interest credits in response to market conditions.

In contrast, the other options do not align with the variable nature of interest-sensitive whole life. Fixed premiums regardless of market conditions suggest a traditional whole life approach where premiums remain constant, which does not allow for adaptation to market fluctuations. Variable death benefits based on age typically apply to other types of life insurance, such as universal life policies, but not directly to interest-sensitive whole life. Lastly, one-time premium payments imply that the policy requires no ongoing contributions, which is not a feature of interest-sensitive whole life policies that often involve ongoing