What is a common feature of universal life insurance policies?

What is a common feature of universal life insurance policies?

• A. Fixed premiums and benefits
• B. Flexible premiums and adjustable death benefits
• C. Mandatory annual reviews
• D. Guaranteed cash surrender value

Answer: (B)

Universal life insurance policies are designed with flexibility in mind, making the feature of flexible premiums and adjustable death benefits standout characteristics. Policyholders can choose how much they pay in premiums, within certain limits, and can adjust the death benefit as their needs change over time. This adaptability allows for financial planning that aligns with changing circumstances, such as changing family needs or income fluctuations. Furthermore, the ability to adjust the death benefit can be particularly beneficial, allowing policyowners to increase coverage when their financial responsibilities grow or decrease it when they may not need as much coverage. This is in contrast to whole life or term policies, which typically come with fixed premiums and predetermined benefits. As a result, the flexibility of universal life policies makes them unique and attractive for many consumers seeking a more tailored insurance solution.

Universal life insurance policies are designed with flexibility in mind, making the feature of flexible premiums and adjustable death benefits standout characteristics. Policyholders can choose how much they pay in premiums, within certain limits, and can adjust the death benefit as their needs change over time. This adaptability allows for financial planning that aligns with changing circumstances, such as changing family needs or income fluctuations.

Furthermore, the ability to adjust the death benefit can be particularly beneficial, allowing policyowners to increase coverage when their financial responsibilities grow or decrease it when they may not need as much coverage. This is in contrast to whole life or term policies, which typically come with fixed premiums and predetermined benefits. As a result, the flexibility of universal life policies makes them unique and attractive for many consumers seeking a more tailored insurance solution.