Which of the following statements about the option to top-up under Variable Life insurance products is FALSE?

The statement that is identified as false regarding the option to top-up under Variable Life insurance products is that policyowners may buy additional units of the Variable Life fund and these units will be allocated to new Variable Life insurance policies. This is incorrect because the process of topping up involves adding additional premium payments to the existing policy, allowing policyowners to purchase additional units within the same life policy, rather than creating new policies.

In contrast, the other statements accurately reflect the nature of the top-up option. When top-ups are made, the further premiums paid are used to buy additional units of the Variable Life fund after deducting any applicable charges. This process ensures that the investment grows according to the performance of the selected funds. Additionally, to execute a top-up, policyowners must pay a further single premium, which is typical for such enhancements in Variable Life products. Lastly, it is customary for policyowners to make top-ups at any time, provided they meet the stipulated minimum amount, which allows for flexibility in managing investment and insurance coverage.