Which policy feature makes a universal life policy different from a whole life policy?

• A. A fixed premium schedule
• B. A flexible premium schedule
• C. A level death benefit
• D. Cash value growth is guaranteed

Answer: (B)

Universal life is defined by its flexible premium feature. You can adjust how much you pay and when you pay, as long as the policy has enough funds to cover costs and keep it in force. That flexibility—changing premium amounts and timing—is what sets universal life apart from whole life, which uses a fixed premium schedule for the life of the policy.

Whole life typically requires a level, fixed premium and guarantees a steady cash value growth, whereas universal life’s cash value growth depends on credited interest and is not guaranteed, reflecting its variable structure. The other options describe aspects more closely associated with whole life or are not the defining difference.