Which statements are FALSE regarding the difference between Endowment and Variable Life policies?

The distinction between Endowment policies and Variable Life policies hinges on several key features, especially concerning premiums, benefits, and the nature of investment risk.

Endowment policies are characterized by fixed premiums and guaranteed benefits, making them substantially more stable in terms of financial planning. This means that the policyholder knows exactly how much they will pay in premiums and what payout they will receive upon maturity or in the event of death, allowing for predictability in financial planning. Conversely, Variable Life policies offer a flexible premium structure where policyholders can adjust the amount and frequency of their premium payments within specified limits. This flexibility allows policyholders to adapt their payments based on their financial situation or investment goals.

The assertion that Endowment premiums and benefits are fixed while Variable Life are flexible accurately highlights this key difference in their structures. This brings clarity to the understanding that premium commitments and benefit payouts in Endowment policies are not subject to change, while Variable Life policies allow for a more adaptable approach, reflecting the financial goals and conditions of the policyholder.

Thus, the statement identifying this distinction is indeed false, as it misrepresents the foundational characteristics of the two types of policies.