What is one of the primary features of a universal life insurance policy?

A primary feature of a universal life insurance policy is its flexible premiums. This type of policy allows policyholders to adjust the amount and frequency of premium payments within certain limits. This flexibility is particularly advantageous because it enables individuals to adapt their premium payments based on their financial situation or changing circumstances.

For example, if a policyholder experiences a period of financial difficulty, they can reduce their premium payments, as long as there is enough cash value in the policy to cover the cost of insurance. Conversely, they can also choose to pay more than the minimum required amount to increase the cash value of the policy. This adaptability is one of the key selling points of universal life insurance, making it appealing for those who may value the ability to tailor their policy to better fit their personal financial needs.

Choosing fixed premiums, having no cash value, or focusing solely on guaranteed renewability does not align with the fundamental design and intention of universal life insurance, which emphasizes flexibility in premium payments and the ability to accumulate cash value over time.