Which of the following statements are true about variable life policies?

A key aspect of variable life insurance policies is that they must maintain a separate account distinct from the insurer's general account. This separate account holds the policyholders' premiums that are invested in a variety of underlying investment options selected by the policyholder, such as stocks, bonds, or mutual funds. Unlike traditional whole life policies, where the cash value is guaranteed and based solely on the insurer's general account, variable life policies allow for a more dynamic investment strategy, reflecting market performance.

This requirement for a separate account ensures that the investment performance directly impacts the cash value and death benefit of the policy, providing the policyholder with not only a risk but also the potential for higher returns compared to fixed life insurance products. The investment risk is borne by the policyholder, which is a critical component of how variable life insurance operates.

The other statements regarding the offer price at valuation and the cash value for endowment policies do not accurately reflect how variable life policies function or may blend concepts that need to be clearly differentiated. Thus, a separate account requirement specifically applies to variable life policies, making that statement true and fundamental to understanding this type of insurance.