What defines the selling price under a variable life insurance policy?

The selling price under a variable life insurance policy is defined by the price at which units are offered for sale by the life company. In variable life insurance, policyholders are given the opportunity to allocate their premiums to a variety of investment options, which correspond to separate accounts or funds. These investments can fluctuate in value based on market conditions.

When units are offered for sale, the value assigned to these units reflects the current market conditions and the performance of the underlying investments. Therefore, the selling price directly correlates with the value of the investments in these accounts, providing policyholders a clear understanding of how their premiums are being allocated based on the current value set by the life company.

The other options do not encapsulate the concept correctly as they refer to aspects like the price at which units are redeemed, which deals with the value upon withdrawal, or fixed amounts unrelated to market fluctuations. Thus, it is the price at which the life company offers these units that clearly defines the selling price in variable life insurance.