In a universal life policy, which two features are adjustable by the policyholder?

• A. Premiums and death benefit
• B. Premiums and cash value
• C. Death benefit and cash value
• D. Cash value and surrender value

Answer: (A)

In a universal life policy, the policyholder has control over two key aspects: the premium payments and the death benefit. Premiums are flexible—you can pay more, less, or even skip payments as long as the cash value can cover the policy costs. The death benefit can also be adjusted within policy rules, allowing you to increase or decrease coverage as your needs change. The cash value grows based on credited interest after costs, and while you can access it through loans or withdrawals, it isn’t directly adjustable by choosing a different cash value—and surrender value is simply the amount you’d receive if you surrender, not a feature you set.