Which statement about protection costs in variable life insurance is correct?

In the context of variable life insurance, the correct statement regarding protection costs is that they are met by implicit charges based on several factors. This reflects the nature of variable life insurance, where the cost of insurance and other expenses are not explicitly stated in the policy but are in fact reflected in the policy's performance and the cash value.

Variable life insurance policies incorporate a flexible premium structure and the cost of insurance is influenced by various variables such as the insured's age, health status, the policy's cash value, and the investment performance of the underlying sub-accounts. These implicit charges are meant to cover the risk of death and other related costs, and they can fluctuate over time, reflecting changes in the insured's profile and other market conditions.

This understanding highlights the dynamic nature of variable life insurance, where protection costs are not fixed and can vary based on different types of assessments rather than being a set amount throughout the term or changing strictly on a predetermined schedule like once a year. Thus, the interaction of multiple factors in determining these costs is an essential aspect of variable life insurance.