Which statements about variable life policies are TRUE?

Variable life policies are designed to allow policyholders to invest their premiums in various investment options, typically through separate accounts that can include stocks, bonds, and mutual funds. The true statement regarding these policies focuses on the volatility of returns being dictated by the fund's investment strategy.

The investment strategy directly affects the performance of the individual investment options available within the variable life policy. As the funds are subject to market fluctuations, the returns can vary significantly based on the underlying investments' performance. This degree of volatility distinguishes variable life policies from whole life or fixed policies, where returns are more predictable and stable.

In contrast, the other statements do not hold true in the context of variable life insurance. The withdrawal value is not guaranteed, as it can fluctuate based on market performance. Additionally, policyholders do have control over their investment choices, allowing them to reallocate funds among the various options available to better match their risk tolerance and investment goals. Finally, unlike fixed products, the returns on a variable life policy are not fixed but instead vary according to market conditions and the specific investment choices made by the policyholder.