What is a common feature of variable life policies related to premiums?

Variable life policies are designed with flexibility in mind, particularly concerning premium payments. The correct answer highlights that premiums can be flexible within certain limits. This means policyholders have the ability to adjust their premium payments based on their financial situation or investment goals, as long as they stay within the parameters set by the insurance company.

This flexibility is a significant advantage, allowing individuals to increase or decrease their contributions to the policy. It helps accommodate changing financial circumstances or investment strategies.

In contrast, options that suggest fixed premiums or require annual payments do not align with the inherent design of variable life insurance, which prioritizes adaptability for policyholders. The option indicating that premiums are refundable upon cancellation does not accurately represent how variable life policies work, as premiums paid typically do not get refunded in this manner after a policy is canceled.