Which of the following statements regarding Variable Life policies is TRUE?

Investment flexibility is a core feature of Variable Life policies, which allows policyowners to allocate their premiums among a range of investment options. The ability to switch funds based on criteria set by the insurance company enables policyowners to adapt their investment strategy according to their risk tolerance and market conditions. This option can help maximize growth potential or protect against market downturns as they can choose to move money between different investment funds.

This feature is particularly valuable since the performance of the investments directly impacts both the cash value and the death benefit of the policy. Policyowners often have a variety of funds to choose from, including stocks, bonds, and money market funds, thereby allowing them to tailor their investment portfolio to align with their financial goals.