Pennsylvania Life and Health Insurance Exam Practice Question
Which characteristics do a universal life insurance policy share with a traditional whole life policy?
Correct Answer: C
Rationale: Universal life insurance and traditional whole life policies both provide death protection and accumulate cash value over time. This shared feature ensures that policyholders have a financial safety net for beneficiaries while also building savings.
Option A is incorrect; while whole life policies have fixed cash values, universal life policies allow for variability. Option B is misleading; adjustable death benefits are unique to universal life policies, not whole life. Option D is also inaccurate; flexible premiums apply to universal life, whereas whole life typically requires fixed premium payments.
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