Oklahoma Life Producer Practice Exam 2025 – All-in-One Resource to Master Your Certification

A Universal Life policy provides the policyholder with flexibility in managing their premium payments, which is a distinctive feature of this type of life insurance. The policyholder can adjust the amount and frequency of their premium payments within certain limits, allowing them to increase or decrease payments as their financial situation changes. This adaptability is particularly beneficial for those who may have fluctuating income or varying expenses over time.

In addition to adjustable premium payments, Universal Life insurance typically includes a cash value component that grows over time, although it's subject to factors such as the performance of the policy's underlying investments. Unlike fixed death benefit policies, Universal Life can offer variable death benefit options, providing further flexibility. This flexibility stands in contrast to other product types that may have more rigid terms regarding premium payments and benefits.