Which of the following statements about variable life policies is TRUE?

The statement regarding variable life policies that is true is that the offer price determines the number of units credited. In variable life insurance, policyholders purchase units in various investment options. The offer price, which is the price at which new units can be purchased, plays a critical role in determining how many units a policyholder receives when they make a contribution to their policy. The more a policyholder pays relative to the offer price, the more units they receive.

This pricing mechanism allows policyholders to understand how their investments are being allocated and provides transparency regarding the impact of their contributions on the overall policy value. The number of units directly affects the policy's cash value, which fluctuates based on the performance of the underlying investments.

Understanding how units are allocated based on the offer price is crucial for policyholders as it influences their investment growth potential and ultimately affects the death benefit and cash value of the insurance product. This is a foundational concept in variable life policies, which differentiates them from more traditional fixed life insurance options.