Final answer:
Both Universal Life and Variable Universal Life policies have flexible premiums, allowing policyholders to adjust their premium payments according to their financial circumstances.
Step-by-step explanation:
Both Universal Life and Variable Universal Life policies have flexible premiums. This means that policyholders have the ability to adjust their premium payments according to their financial circumstances.
Unlike a level fixed premium which remains constant throughout the policy term, a flexible premium allows policyholders to increase or decrease their premium payments as needed. This offers a level of flexibility and control for individuals who may experience changes in their financial situation over time.
For example, a policyholder may choose to increase their premium payments during periods of financial stability and decrease their payments during periods of financial uncertainty. The ability to adjust premiums makes these policies adaptable to the policyholder's changing needs.