Payment of additional premiums over and above the target amount
Skipping of premiums
Both A & B
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is C. Both A & B.
Universal life plans are a type of permanent life insurance that provides both death benefit protection and cash value accumulation. With universal life, you can choose to pay premiums that are higher than the minimum required, which will allow your cash value to grow faster. You can also skip premiums if you need to, without having your policy lapse.
Here is a brief explanation of each option:
- Option A: Payment of additional premiums over and above the target amount. With universal life, you can choose to pay premiums that are higher than the minimum required. This will allow your cash value to grow faster.
- Option B: Skipping of premiums. With universal life, you can skip premiums if you need to, without having your policy lapse. This can be helpful if you have a temporary financial setback.
I hope this helps!