Oklahoma Life Producer Practice Exam

Another term to describe a Universal Life policy is _____________

1. Adjustable Life Policy

2. Flexible Premium

3. Whole Life Policy

4. Term Life Policy

The correct answer is: Flexible Premium

A Universal Life policy is often referred to as a Flexible Premium policy due to its unique structure that allows policyholders to adjust their premium payments and death benefits. This flexibility is a distinguishing feature of Universal Life insurance, enabling individuals to tailor the policy according to their financial situation and changing requirements over time. The ability to vary premium payments makes it different from other types of life insurance policies, such as Whole Life, which typically requires fixed premiums, or Term Life policies, which provide coverage for a specific period without the same level of flexibility in premium changes. The term "Adjustable Life Policy" also refers to a different form of insurance that may allow adjustments but does not encompass the same features as Universal Life. Thus, "Flexible Premium" aptly describes the essence of a Universal Life policy.