Flexible premium policies are described as which policy type?

Flexible premium policies are described as which policy type?

• A. Fixed universal life policy.
• B. Variable universal life policy.
• C. Term life policy.
• D. Whole life policy.

Answer: (B)

Flexible premium policies come from universal life products, which let you adjust premium payments (within limits) and often vary the death benefit as well. The version that pairs this flexibility with investment options and cash value tied to separate accounts is the variable universal life policy, so it fits the description best. In contrast, term life, whole life, and fixed-premium universal life have set premiums or no cash-value-driven flexibility, so they don’t match the concept of adjustable premium payments.

Flexible premium policies come from universal life products, which let you adjust premium payments (within limits) and often vary the death benefit as well. The version that pairs this flexibility with investment options and cash value tied to separate accounts is the variable universal life policy, so it fits the description best. In contrast, term life, whole life, and fixed-premium universal life have set premiums or no cash-value-driven flexibility, so they don’t match the concept of adjustable premium payments.