Final answer:
Universal Life insurance is a type of cash-value life insurance that offers a combination of an Annually Renewable Term and a Cash Value Fund. It allows partial Cash Value withdrawals and the policy owner receives an annual statement.
Step-by-step explanation:
Universal Life insurance is a type of cash-value (whole) life insurance that offers a combination of an Annually Renewable Term and a Cash Value Fund. One of the statements regarding Universal Life insurance that is NOT correct is D. It does not have a level premium with a cash value that fluctuates depending on stock and bond market performance. Instead, Universal Life insurance typically has a flexible premium structure where the policy owner can adjust the premium payments over time.
Universal Life insurance policies also allow partial Cash Value withdrawals, which can be used for various purposes such as covering policy expenses or supplementing income. Additionally, the policy owner receives an annual statement listing the premiums paid, death benefit amount, and related contract expenses.