Tennessee Insurance Practice Exam

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Prepare for the Tennessee Insurance Exam with engaging flashcards and comprehensive multiple-choice questions. Understand hints and receive detailed explanations for each query. Ace your test with confidence!

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What is a key feature of Universal Life insurance?

Fixed premium payments
Flexible premium payments
Guaranteed cash value
Never changes in premium

The correct answer is: Flexible premium payments

Universal Life insurance is characterized by its flexible premium payment structure, allowing policyholders to adjust both the amount and frequency of their premium payments within certain limits. This feature is beneficial for individuals whose financial situations may vary over time, as it provides the opportunity to pay more in profitable times and less during tighter financial periods. Unlike traditional whole life insurance, where premiums are predetermined and remain constant, Universal Life allows for this adaptability, making it a more tailored option for policyholders. This flexibility can also affect the accumulation of cash value and death benefits, giving the insured greater control over their policy.