Which of the following products requires a securities license?

A variable annuity is an investment product that combines features of both insurance and investments, which is why it requires a securities license to sell. Unlike traditional fixed annuities, variable annuities allow the policyholder to allocate their premiums among a variety of investment options, typically mutual funds, which can lead to varying returns based on the performance of those investments.

Because variable annuities involve investment components where the values fluctuate according to market conditions, they fall under the jurisdiction of the Securities and Exchange Commission (SEC), and selling them requires a registered representative to hold a securities license. This licensing ensures that the selling agent has the proper training and knowledge to provide sound investment advice regarding such products and to protect consumers by adhering to regulatory compliance and fiduciary responsibilities.

In contrast, whole life, term life, and universal life insurance products are purely insurance products without associated investment components that would necessitate a securities license.