What is a key feature of universal life insurance policies?

Universal life insurance policies are characterized by their flexibility in premium payments, which distinguishes them from other policy types. This flexibility allows policyholders to adjust both the amount and the frequency of their premium payments within certain limits set by the insurer. This means that if a policyholder experiences a financial change, they can reduce their payment or even skip payments without losing coverage, provided that there is enough cash value in the policy to support the cost of insurance.

Additionally, universal life insurance policies typically accumulate cash value over time, which can be accessed or borrowed against, offering policyholders an added benefit. This contrasts with fixed premium life insurance policies, where premium amounts do not change and must be paid consistently. The absence of a cash value component and low death benefits, as suggested by other options, are not features of universal life insurance, making them incorrect in this context.