Question

Whole life insurance provides a combination of death protection and a cash value buildup. What type of protection is provided by a Universal Life policy?

A. Temporary death benefit
B. Flexible death coverage
C. Constant or continuous death benefit
D. Level death benefit

Answer 1

A Universal Life policy provides flexible death coverage, allowing policyholders to adjust the death benefit and premium amounts over time.

Step-by-step explanation:

A Universal Life policy provides a Flexible death coverage. Unlike whole life insurance, where the death benefit and cash value are fixed, a universal life policy allows for flexibility in adjusting the death benefit and premium amounts over time. This gives policyholders the ability to change their coverage as their needs change.