Under securities regulations, the prospectus for variable life products must be delivered at what time?

• A. After the sale
• B. Before the sale only
• C. Prior to or at the time of the sale
• D. Never delivered

Answer: (C)

The key idea is that variable life products are securities, because their cash value is tied to a separate account with investment options. Regulators require the prospectus to be available to the buyer before they commit to the contract, specifically prior to or at the time of sale. This ensures the investor has full, up-to-date information about the investment risks, fees, charges, and features before making the purchase. Delivering the prospectus after the sale would deprive the buyer of essential disclosures and could breach securities laws. Delivering it before the sale or at the exact moment of sale satisfies the requirement, while never delivering it would be improper.