Which death benefit option has a level death benefit while cash value increases?

The correct response is based on the characteristic of a life insurance policy that features a level death benefit while the cash value accumulates over time. In this context, Option A accurately describes a policy where the death benefit remains consistent throughout the life of the policyholder, but the cash value component continues to grow.

This is contrasted with other options where the death benefit structure differs. For instance, Option B, known as the Increasing Death Benefit option, provides a death benefit that grows alongside cash value, typically resulting in a variable death payout over time. Option C, related to the Variable Death Benefit, allows for the death benefit to fluctuate based on the performance of investment accounts but does not guarantee a level death benefit. Lastly, Option D, which describes a Decreasing Death Benefit, usually applies to term insurance linked to a decreasing loan balance or policy premium, leading to a diminishing payout over time.

Thus, Option A represents the scenario where the promised payout to beneficiaries remains unchanged while the savings component of the policy enhances through cash value accumulation.