216k views
3 votes
All of these are characteristics of a universal life insurance policy EXCEPT

Flexible death benefit
All of these are characteristics of a universal life insurance policy EXCEPT
Flexible death benefit
Fixed surrender value
Flexible premiums
Builds cash value

User James Pack
by
7.8k points

1 Answer

3 votes

Final answer:

A Fixed surrender value is not a characteristic of universal life insurance policies, which instead feature flexible premiums, flexible death benefits, and the ability to build cash value.

Step-by-step explanation:

The characteristic that is not typically associated with a universal life insurance policy is a Fixed surrender value. Universal life insurance policies are known for their flexible premiums and flexible death benefits, as well as the ability to build cash value over time. Unlike the more rigid structure of traditional whole life policies, universal life insurance allows policyholders to adjust their premiums and death benefits to suit changing needs. The cash value component of the policy can accumulate on a tax-deferred basis and be used for various purposes, but the surrender value is often not fixed and can vary based on the cash value and other factors.

User Mzimmermann
by
7.8k points