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

In the context of variable life policies, understanding the role of prices and costs associated with the units within the policy is crucial. Each of the statements reflects an important aspect of how variable life insurance operates, making them collectively true.

The offer price is indeed critical when determining how many units are allocated to the policyholder's account. When premium payments are made, they are used to purchase units at the offer price, which ensures that the policyholder's investment grows based on market performance.

The margin between the bid and offer prices serves a practical purpose as well, as it is designed to cover the management costs associated with the policy. This margin allows the insurance company to manage investments and maintain the overall health of the fund.

Finally, the policy value is accurately calculated based on the bid price of the units. The bid price represents the value at which the insurance company buys back the units from the policyholder, ensuring the policy value is reflective of its current redemption value.

By understanding these components, one can see how they collectively contribute to the overall functioning of a variable life policy, hence confirming that all statements are indeed true.