PSI Ohio Insurance Practice Exam 2025 – Complete Preparation Guide

Question: 1 / 400

Which of the following features differentiates Universal Life Insurance from other forms of Whole Life Insurance?

Fixed premiums

Payout at death only

Premium schedules

Universal Life Insurance is characterized by its flexible premium payment structure, allowing policyholders to adjust the amount and timing of their premium contributions within certain limits. This contrasts with traditional Whole Life Insurance, which typically requires fixed premiums throughout the life of the policy.

While fixed premiums, payouts at death, and guaranteed cash value are common features in many insurance policies, including Whole Life Insurance, the ability to modify premium payments is what distinctly sets Universal Life apart. This flexibility can be appealing to policyholders who may experience fluctuating financial circumstances or wish to vary their investments in the policy over time. Therefore, the option highlighting premium schedules accurately reflects a key differentiator of Universal Life Insurance compared to traditional Whole Life policies.

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Guaranteed cash value

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