Which of the following statements about option top-up under variable life insurance is FALSE?

The statement indicating that the withdrawal value is guaranteed is indeed false. In variable life insurance, the withdrawal value can fluctuate based on the performance of the underlying investments chosen by the policyholder. Unlike some other types of insurance policies, the variable life insurance does not guarantee the withdrawal value, as it is directly affected by the investment performance and market conditions. This means that as the value of the underlying assets rises or falls, so too does the policy's cash value and withdrawal amount.

The other statements are consistent with how variable life insurance operates. Policy owners can make additional contributions to their policies through top-ups, which enhances their investment in the variable life fund but does not create new policies. The costs associated with providing the insurance protection often come from implicit charges rather than explicit ones, reflecting the nature of these products. Variable life insurance's inherent design allows for this flexibility, which can directly affect policy performance and value.