Which characteristic is NOT typical of a universal life insurance policy?

Universal life insurance policies are designed with flexibility and options that allow policyholders to tailor their coverage to their specific needs. One of the key features of universal life insurance is the allowance for flexible premiums, which means that policyholders can adjust how much they pay in premiums, and when they pay them, as long as they meet the minimum premium requirements to keep the policy in force.

Additionally, these policies offer an adjustable death benefit. Policyholders have the option to increase or decrease the death benefit amount, which can be particularly beneficial in changing financial circumstances or needs for coverage.

Universal life insurance also provides cash value accumulation, allowing the policy’s cash value to grow over time based on interest accrued. This can be a valuable feature for policyholders looking for both life insurance coverage and a cash accumulation component.

In contrast to these flexible characteristics, fixed premium payments are not typical of universal life insurance policies. Fixed premiums are more characteristic of whole life insurance, where premium payments remain constant over the life of the policy. The flexibility inherent in universal life insurance is a distinguishing feature, making it possible for policyholders to adapt their premium payments and benefits as their circumstances change.