Which statements are FALSE regarding the characteristics of Endowment and Variable Life policies?

The statement is considered false because, while both Endowment and Variable Life policies may have stated premiums at inception, the premiums can reflect differing structures in terms of flexibility and investment. Endowment policies typically require a fixed premium payment, while Variable Life policies allow for flexible premium payments that can change over time based on the policyowner's choices and funding decisions.

Endowment policies primarily focus on guaranteed benefits at a specific age or period, providing certainty in terms of benefit. On the other hand, Variable Life policies are designed to have a cash value component linked to investment performance, meaning the value and possibly the benefits are variable and subject to market risk. Knowing this distinction highlights how premium structures can differ fundamentally between the two types of policies, especially the flexibility inherent in Variable Life policies as opposed to the rigidity of Endowment policies.

Understanding that both products have distinctive attributes relating to how premiums are applied enables policyowners to make informed decisions based on their financial objectives and risk tolerance.