Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

Universal life insurance is characterized by its flexibility in both premiums and death benefits. This means policyholders can adjust their premium payments and modify the death benefit amount within certain limits. Unlike more traditional life insurance policies that have fixed premiums and benefits, universal life insurance allows the policyholder to increase or decrease the premium payments as their financial situation changes. Additionally, they can choose to increase or decrease the death benefit, often providing more tailored options based on their personal needs or goals.

The flexibility in universal life insurance is a major advantage because it accommodates changing financial circumstances, making it an attractive option for many consumers. This dynamic structure is not found in policies that pay a lump sum at pre-defined ages or those that restrict premium payments to a specific schedule. Instead, universal life insurance encourages a more personalized approach to life insurance planning.