Which of the following statements are FALSE regarding the bid-offer spread?

The statement regarding the bid-offer spread being used to provide a death benefit for a Variable Life policy is false because the bid-offer spread pertains to the difference between the buying price (bid) and selling price (offer) of investments or insurance products, rather than directly affecting the mechanisms of death benefits. The death benefit in a Variable Life policy is defined by the policy structure itself and factors such as the cash value, but it isn't directly funded or influenced by the bid-offer spread.

Understanding the context of the bid-offer spread is essential. It's a concept commonly found in the financial markets and relates to market liquidity and transaction costs rather than being a financial instrument for providing policy benefits. Thus, associating the bid-offer spread specifically with the death benefit of a Variable Life policy indicates a misunderstanding of these financial concepts.