Variable life insurance is indeed a type of whole life assurance that includes an investment component. This means that a portion of the premium paid by the policyholder is invested in various sub-accounts available within the policy. For instance, if a policyholder pays an annual premium of $10,000, half of this amount could be allocated towards the sum assured (death benefit), say $1 million, while the remaining half is invested in different financial instruments. Consequently, the total benefit received upon the death of the policyholder would be the sum assured plus a variable amount generated from the investment account. This feature of variable life insurance makes it a unique and attractive option for policyholders who are not only interested in life coverage but also in investment opportunities.

Choice B is incorrect. This description refers to an annuity, not a variable life insurance policy. In an annuity, the policyholder makes a lump sum payment and in return receives regular payments for a specified period of time or until death.

Choice C is incorrect. This describes term life insurance that can be renewed at the end of the term, not variable life insurance. Variable life insurance has an investment component and provides lifelong coverage.

Choice D is incorrect. While it does mention whole life assurance with an investment component which aligns with variable life insurance, it incorrectly emphasizes on flexibility in terms of premium payable which is not a defining feature of variable life insurance.