Which characteristic of Universal Life policies distinguishes them from Whole Life policies?

Universal Life policies are designed to provide a high degree of flexibility, which is a distinguishing feature that sets them apart from Whole Life policies. With Universal Life, policyholders have the ability to adjust their premium payments within certain limits, as well as the option to change the death benefit amounts. This flexibility allows individuals to tailor their life insurance coverage and premium payments to better fit their changing financial needs over time.

In contrast, Whole Life policies typically have fixed premiums and death benefits, making them less adaptable to the policyholder's circumstances. Additionally, while Universal Life policies do accumulate cash value, this is not their defining characteristic. Whole Life policies also possess a cash value component, which further highlights the flexibility of Universal Life as a key differentiator.