In a universal life policy, which characteristic describes death benefit options?

• A. Increasing or level death benefit
• B. Fixed death benefit
• C. Decreasing death benefit
• D. No death benefit option

Answer: (A)

In universal life insurance, the death benefit can be set in two ways: level or increasing. The level option keeps the death benefit fixed at the policy’s face amount, regardless of how much cash value has accumulated. The increasing option adds the cash value to the death benefit, so the payout at death equals the face amount plus the cash value. This flexibility is a key feature of universal life, allowing the benefit to grow with cash value or stay constant.

So the correct choice captures both possibilities—either increasing or level death benefit. The other choices aren’t accurate descriptions of UL death benefit options: UL does provide a death benefit, and it isn’t described as a fixed or decreasing benefit, nor is there no death benefit option.