Oklahoma Life Producer Practice Exam 2026 – All-in-One Resource to Master Your Certification

Variable Universal Life (VUL) insurance policies are distinguished by their flexibility, particularly in the areas of premium payments and death benefits. The ability to adjust death benefits is a key feature that enhances this flexibility. Policyholders can choose to increase or decrease the death benefit within certain limits, allowing them to tailor their insurance coverage according to their changing circumstances, financial needs, or goals.

This adjustability also serves a dual purpose, as increasing the death benefit can potentially increase the costs associated with the policy, while decreasing it can help lower premiums when needed. This level of customization is not typically available in more traditional life insurance policies, where the death benefit is usually fixed and does not allow for such changes.

In contrast, features like set cash values, fixed premiums, and guaranteed annual growth rates generally represent more rigid terms found in traditional life insurance policies, lacking the same degree of adaptability to meet an individual's evolving financial situation. Therefore, the adjustable death benefits allow Variable Universal Life insurance policies to stand out by providing policyholders with a way to strategically manage their coverage as their needs change over time.