The correct answer is: D. All of the above
Universal life insurance is a type of permanent life insurance that offers a flexible premium, death benefit, and cash value. The premium can be adjusted up or down over time, depending on your needs and financial situation. The death benefit is also flexible and can be increased or decreased as needed. The cash value grows on a tax-deferred basis, and can be used for a variety of purposes, such as retirement savings, college funding, or a financial emergency.
Here is a brief explanation of each option:
- Flexible premiums: Universal life insurance premiums can be adjusted up or down over time, depending on your needs and financial situation. This makes it a good option for people who want to be able to control their monthly expenses.
- Flexible face amount: The death benefit in universal life insurance can be increased or decreased as needed. This makes it a good option for people who want to be able to tailor their coverage to their changing needs.
- Death benefit: The death benefit in universal life insurance is a guaranteed amount that will be paid to your beneficiaries upon your death. This money can be used to cover funeral expenses, pay off debts, or provide for your loved ones financially.
- Cash value: The cash value in universal life insurance grows on a tax-deferred basis. This means that you do not have to pay taxes on the interest or dividends that your money earns until you withdraw it. The cash value can be used for a variety of purposes, such as retirement savings, college funding, or a financial emergency.
Overall, universal life insurance is a flexible and versatile type of life insurance that can be tailored to meet your individual needs. If you are looking for a life insurance policy that offers flexibility, control, and growth potential, then universal life insurance may be a good option for you.