Which of the following is NOT true about the top-up option of Variable Life insurance?

The assertion that policyowners may buy additional units of Variable Life fund for new policies is not accurate in the context of the top-up option. The top-up feature primarily allows policyowners to add extra premium contributions to their existing Variable Life insurance policy, enhancing the cash value and potentially the death benefit without the need to establish a new policy or purchase new units.

In contrast, when the top-up option is exercised, it involves a single premium payment that enhances the current policy rather than initiating a new one. Therefore, the ability to buy additional units pertains to the existing policy rather than new separate policies.

To summarize, the focus of the top-up option is on the existing policy, allowing policyowners to increase their cash value and death benefit through additional contributions rather than acquiring new policies. This understanding emphasizes the specific nature of the top-up feature as a means to augment an existing coverage rather than initiate a completely new one.