Which type of insurance has flexible premium payments?
Asked by: Cecile Ward | Last update: December 24, 2025Score: 4.9/5 (59 votes)
Which of the following policies has a flexible premium?
Universal life insurance is characterized by flexible premiums and death benefits, as well as an investment component controlled by the policy owner. It's more adjustable than whole life insurance and offers potential for higher cash value accumulation.
What type of insurance is flexible premium adjustable life?
Adjustable life insurance is a policy that allows you to change features after signing up, including the premium payment and the death benefit. Also known as universal life, adjustable life policies include an interest-bearing savings component, the “cash value” account, which you can tap into while alive.
Does variable life insurance have flexible premiums?
Variable universal life policies have flexible premiums.
The premium flexibility for variable universal policies usually comes down to two things: flexibility in when you pay and how much you pay. Some VUL policies allow you to change the dates that your life insurance premium is due.
Which type of life insurance offers flexible premiums a flexible death?
Universal life is a form of permanent life insurance that gives policyholders flexibility in paying premiums, a cash savings component, and a death benefit.
What Is Flexible Premium Life Insurance? - InsuranceGuide360.com
Which type of life insurance allows for flexible premium payments?
Universal life is also the most flexible of all the various kinds of policies. Because it treats the elements of the policy separately, universal life allows you to change or skip premium payments or change the death benefit more easily than with any other policy.
What are flexible premiums?
Flexible premiums refer to the policyholder's ability to adjust the amount and frequency of their premium payments within certain limits. This flexibility allows the policyholder to contribute more or less funds based on their financial situation at any given time, without jeopardising the status of the policy.
Are whole life premiums flexible?
With whole life, your premiums are fixed and guaranteed never to rise1. As long as you continue to pay them, you can count on the life insurance benefits being paid to your beneficiaries. With universal life there are no fixed premiums and you have more flexibility on when you make payments.
What type of life insurance incorporates flexible premiums and an adjustable death benefit Quizlet?
Universal Life is designed to provide flexible premiums and an adjustable death benefit. Which type of policy is considered to be overfunded, as stated by IRS guidelines? "Modified Endowment Contract". A policy that is overfunded to where it does not meet the 7-pay test is considered a Modified Endowment Contract.
Are premium payments fixed with a variable life policy?
The premiums you pay are fixed throughout the life of the contract, while the performance of your chosen subaccounts determines the growth of your account value, and can also determine the value of your death benefit.
What is flexible insurance plan?
A benefit program that offers employees a choice between various benefits including cash, life insurance, health insurance, vacations, retirement plans, and child care.
Which type of life insurance policy is an advantage of flexibility?
Flexibility: With universal life insurance, you have the flexibility to adjust the death benefit. Without purchasing a new policy, the benefit can be decreased to a lower amount or increased to provide more coverage. This flexibility allows the death benefit to be tailored over time as needs and circumstances change.
What is survivor life insurance?
Survivorship life insurance insures two people and only pays out the death benefit after both have passed away. It's often purchased by a couple as a means of leaving money to their children, estate planning, leaving a sizeable legacy, or funding a support system for a dependent who may require lifetime care.
Which type of insurance offers the most flexibility?
The type of insurance plan that offers the most flexibility is the Preferred Provider Organization (PPO), as it allows the policyholder to choose any healthcare provider, although staying within the plan's network can offer cost advantages.
Which type of policy allows for a flexible premium and a variable investment component?
Variable universal life (VUL) combines lifelong insurance protection with flexible premiums and cash value you can access while alive. VUL insurance lets you invest and grow the cash value through subaccounts that operate like mutual funds.
What kind of premium does a whole life policy have?
Most whole life policies feature level premiums, meaning the amount you pay every month won't change. Whole life insurance has a cash savings component, known as the cash value, which the policy owner can draw on or borrow from. The cash value of a whole life policy typically earns a fixed rate of interest.
What type of insurance incorporates flexible premiums?
Universal life insurance is also referred to as "flexible premium adjustable life insurance." It features a savings element (cash value) that grows on a tax-deferred basis.
Which of the following life insurance policies provides more flexibility?
Universal life insurance
It's sometimes called adjustable life insurance because it offers more flexibility than a whole life policy. For example, universal life policies allow you to increase or decrease your death benefit and even adjust or skip your monthly premium (within certain limits).
Which type of life insurance offers flexible premiums a flexible death benefit in the choice of how the cash value will be invested?
The type of life insurance that offers flexible premiums, a flexible death benefit, and investment choices for cash value is the variable universal policy. This policy allows for significant customization compared to other life insurance options. Thus, the correct answer is A. Variable universal policy.
What are 2 disadvantages of whole life insurance?
A more complex product than term life insurance. Higher premiums than term life insurance. Could be costly if coverage lapses early.
Which is better, whole life or iul?
Wealth Accumulation: If you want to maximize your cash value growth potential, IUL may be more appealing due to its higher return potential. Guaranteed Protection: Whole Life might be a better fit if you prioritize a guaranteed death benefit and stable cash value growth.
Do you pay premiums on whole life insurance forever?
Whole life insurance gives you cover for your entire life. The premium (the money you pay) doesn't change, so you don't have to worry about increasing costs — a definite advantage over term insurance.
What is the flexibility of premium payments?
This means that individuals can increase or decrease the amount they pay each month, depending on their financial situation. This feature allows policy-holders to have control over their policy and make changes as needed.
Is flexible premium adjustable life insurance whole life?
Like other types of permanent life insurance, an adjustable life insurance policy lasts your entire life and includes a cash value savings component that builds value over time.
What is a flexible premium variable life insurance policy?
Flexible premium payments
Instead of paying the same premium amount every month as with a term life policy, variable life insurance lets you pay more of your premiums upfront, pay premiums from the policy's cash value, or pay a monthly minimum premium without building cash value.