A universal life insurance provides two types of death protections, i.e. Type A and B. As with any insurance policy, universal life insurance has its own pros and cons. There are two principle advantages. Which of the followings is/are out of those advantages?
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A. B. C. D.B
Universal life insurance is a type of permanent life insurance policy that provides both a death benefit and an investment component. The policyholder pays premiums, which are then used to fund the death benefit and the investment account.
One of the key advantages of universal life insurance is its flexibility. Policyholders have the ability to adjust the amount and timing of their premium payments, as well as the death benefit. This flexibility can be useful for individuals with fluctuating incomes or changing financial needs.
Another advantage of universal life insurance is the savings feature. As the policyholder pays premiums, a portion of those funds are allocated to an investment account, which grows over time. Policyholders may have the option to withdraw funds from this account or borrow against it.
Therefore, the correct answer to the question is B, "Flexibility and savings feature." Both flexibility and the savings feature are principal advantages of universal life insurance policies.
Option A, "Flexibility" is partially correct, but it only mentions one of the advantages of universal life insurance.
Option C, "Flexibility and variability," is incorrect. While flexibility is indeed an advantage of universal life insurance, "variability" is not a recognized advantage of the policy.
Option D, "Variability and savings feature," is also incorrect. While the savings feature is a recognized advantage of universal life insurance, "variability" is not an advantage of the policy.