Which statement best describes the flexibility of premiums in Variable Life Insurance?

In Variable Life Insurance, the flexibility of premiums is a key feature that differentiates it from other types of life insurance policies. Premiums can indeed be adjusted within certain limits, allowing policyholders the opportunity to increase or decrease their premium payments based on their financial situation or goals.

This flexibility is critical for policyholders who may experience changes in income or financial needs over time. Variable life insurance policies typically specify minimum and maximum premium amounts, giving the policyholder control over how much they wish to pay into the policy. While there are parameters set by the insurer, the ability to change premium levels is a distinct advantage, particularly for individuals with fluctuating incomes or changing financial priorities.

In contrast, fixed premiums would not provide this adaptability, nor would premiums that are strictly tied to market performance or mandated to be paid annually without exception. This flexibility not only allows for tailored financial planning but also can impact the policy's cash value and death benefit depending on how premiums are allocated and invested.