West Virginia State Life Insurance Practice Exam

Question: 1 / 400

What is a primary feature of Universal Life Insurance?

Fixed premiums

Flexible premiums

Universal Life Insurance is designed to provide policyholders with flexibility, which is one of its key characteristics. With this type of insurance, individuals have the option to adjust their premium payments and death benefits based on their changing financial situations and needs. Unlike whole life insurance, where premiums are typically fixed, or term insurance with its specified term lengths, universal life allows insured individuals to pay more or less than the scheduled premium, as long as there is enough cash value to cover the costs of insurance and policy administration.

This flexibility accommodates various life circumstances; for example, during periods of financial difficulty, a policyholder might choose to pay a lower premium, or conversely, if additional cash flow is available, they might decide to contribute more to build cash value or enhance their death benefit. Thus, the primary feature of universal life insurance is its flexible premium structure, allowing policyholders to manage their insurance needs dynamically over time.

Get further explanation with Examzify DeepDiveBeta

Limited death benefits

Standardized policies

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy