Final answer:
The false statement concerning universal life insurance is that the death benefit is fixed. Universal life insurance actually allows for adjustable death benefits, in addition to offering the flexibility to adjust premiums and cash value.
Step-by-step explanation:
The question pertains to the features of universal life insurance, which is a type of cash-value life insurance that combines a death benefit with a savings component (cash value). The false statement among the options given is, "The death benefit of a universal life insurance policy is fixed." In fact, one of the advantages of universal life insurance is that it offers adjustable death benefits, meaning the policyholder has the flexibility to increase or decrease the death benefit subject to certain conditions and underwriting approval.
Universal life insurance policies give the insured a great deal of flexibility. The policyholder can adjust premiums, the face value, and the cash value of the policy. Additionally, the cash value accumulated can be used to pay the premiums. However, it's important to note that while the policyholder does not have direct investment responsibilities for the cash value, investment performance can affect the value of the policy.