New York Insurance Exam Practice Question
Which of the following is a key feature of universal life insurance?
Correct Answer: B
Rationale: Universal life insurance is characterized by its flexibility, allowing policyholders to adjust both premiums and death benefits according to their financial needs. This adaptability is a core feature that distinguishes it from other types of life insurance.
Option A, fixed premiums, is incorrect as universal life policies typically offer adjustable premiums. Option C, guaranteed cash value growth, misrepresents universal life, which does not guarantee growth but rather offers potential based on interest rates. Option D, no cash value accumulation, is also wrong since universal life insurance does accumulate cash value, albeit not guaranteed.
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