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

In life insurance policies, "flexible premium" refers to the ability of policyholders to vary their premium payments based on their current financial situation. This flexibility allows individuals to adjust the amount and timing of their premium payments rather than being locked into a fixed amount for the duration of the policy. This feature is particularly beneficial for those whose financial circumstances may change over time, enabling them to maintain their coverage without the pressure of a rigid payment structure.

The other options describe different aspects of life insurance that do not pertain to the flexibility of premium payments. For example, the ability to change the coverage amount or to pay higher premiums for additional benefits relates to different policy features rather than the premium structure itself. Additionally, fixed premiums indicate a lack of flexibility, which contradicts the concept of flexible premiums in this context. Thus, the correct answer highlights the core principle of variability in premium payments catering to the policyholder's financial needs.