Final answer:
The main advantage of a flexible premium life insurance policy is that it allows the policyholder to adjust their premium payments without much difficulty, offering more control and adaptability.
Step-by-step explanation:
An advantage of owning a flexible premium life insurance policy is that the policyholder can make policy changes without difficulty (Option C). Unlike fixed premium policies, a flexible premium policy allows the policyholder to alter the amount and timing of premium payments, which offers greater control over the policy and the ability to respond to changes in their financial situation.
Life insurance policies are predicated on the idea that a policyholder pays an insurance premium, and in return, the insurer provides a death benefit to beneficiaries upon the death of the insured. An actuarially fair premium is a premium that equates to the expected loss risk of the insured event occurring. When insurers are unable to distinctly categorize risk groups due to lack of information about things like family health histories, they must spread the risk across a wider base, which can lead to an average premium that does not accurately reflect individual risk levels.