Which statements about Single Premium Variable Life policies are TRUE?

Single Premium Variable Life policies do indeed have characteristics similar to Whole Life insurance, particularly regarding the absence of a fixed term. This means that the policy does not expire after a certain period and is designed to provide lifelong coverage, provided the premiums are paid. In the case of a Single Premium policy, the entire premium is paid upfront, which subsequently allows the cash value to grow on a variable basis, reflecting the performance of the chosen investments. This aspect aligns with Whole Life policies, which also offer lifelong coverage but typically have fixed premiums and guaranteed values.

In contrast to this understanding of the policy's flexibility, other statements are not accurate. For instance, top-ups, which refer to additional premiums paid into the policy after the initial premium, are generally allowed in many types of variable life policies, offering a way to increase cash value. Policyowners typically have the option to adjust the death benefit to align with their coverage needs, which contradicts the claim that they cannot vary the life coverage. Finally, Single Premium Variable Life policies do not typically come with minimum term requirements as they are designed to be effective over the lifetime of the insured rather than being limited by time constraints.