Which statement describes the schedule of calculation frequencies for death benefits, cash value, and separate account cash values?

• A. Death benefits annually; Cash values monthly; Separate account cash values daily
• B. Death benefits monthly; Cash values daily; Separate account cash values monthly
• C. Death benefits annually; Cash values daily; Separate account cash values monthly
• D. Death benefits quarterly; Cash values monthly; Separate account cash values daily

Answer: (A)

In variable life contracts, each value is updated at a different cadence to reflect what drives it. The death benefit is a contractual amount that doesn’t drift with market movements, so it’s typically calculated and reviewed on an annual basis. The policy’s cash value in the general account changes as premiums, charges, and credited interest evolve, usually updated monthly. The separate account, which holds the market‑driven investments, fluctuates with the market and is valued daily to reflect those daily price changes. This combination—death benefits calculated annually, cash values updated monthly, and separate account cash values updated daily—matches how these components behave, so it’s the best description.