Which of the following statements about flexibility features of variable life policies is false?

The statement indicating that policyholders can take loans against their variable life policies up to the entire withdrawal value is misleading, making it the incorrect or false statement in this context. In variable life insurance, policyholders typically have the ability to borrow against the cash value of their policy, but the loan amount cannot exceed the accumulated cash value minus any outstanding loans or other obligations. This means that the total amount available for borrowing is capped and not equivalent to the entire withdrawal value of the policy.

In contrast, the flexibility features described in the other statements align with the nature of variable life insurance. Policyholders indeed have the ability to adjust their premium payments, which allows for varied contributions based on financial circumstances or personal preference. Additionally, they can allocate their cash value among different investment options, permitting them to tailor their investment strategy according to market conditions or their personal financial goals. Finally, policyholders have the option to modify the death benefit either by increasing or decreasing it, giving them further control over their life insurance coverage as their needs change.

Understanding these features is essential for recognizing how variable life policies can be tailored to individual financial strategies and personal circumstances.