Which of the following statements regarding variable life insurance policies is true?

In variable life insurance, policyholders typically have the flexibility to choose how their premiums are allocated among various investment options, such as stocks, bonds, or mutual funds. This allows individuals to tailor their investment strategy according to their risk tolerance and financial goals, contrary to the statement that the insurance company solely determines the allocation.

Variable life insurance policies often include a variety of charges beyond just administrative expenses, such as cost of insurance, mortality and expense risk charges, and investment management fees. Therefore, the statement is inaccurate as it underestimates the range of fees associated with these policies.

Contrary to this assertion, variable life insurance policies are considered securities and must be accompanied by a prospectus to provide potential investors with essential information about the investments and associated risks. This regulatory requirement ensures that policyholders are informed before making an investment decision.