PSI Ohio Insurance Practice Exam 2026 – All-in-One Guide to Exam Success

Universal life insurance is designed with flexibility in mind, particularly when it comes to premium payments. Policyholders have the ability to adjust the amount and timing of their premium payments within certain limits. This means that if a policyholder experiences financial difficulties, they can reduce or even skip payments, as long as there is enough cash value in the policy to cover the cost of insurance. Conversely, during times of financial stability, they can pay more into the policy, which can increase the cash value and potentially the death benefit.

This flexibility is a significant advantage for policyholders because it allows them to manage their insurance costs according to their financial situation or needs at any given time, making universal life insurance a more adaptable choice compared to other types of life insurance that may have fixed premium structures. This design supports dynamic financial planning and personal circumstances, which is a key reason why many opt for universal life policies.