What is typically true about the death benefit of universal life insurance?

The death benefit of universal life insurance is typically designed to be flexible, allowing the policyholder to adjust it according to their changing financial needs and circumstances. This flexibility is one of the main features that distinguishes universal life insurance from other more traditional life insurance products.

As life situations change, such as the addition of dependents, changes in income, or shifts in financial goals, policyholders can choose to increase or decrease the death benefit. This adaptability is particularly beneficial for those who desire a policy that can grow with them throughout different phases of life.

Other options do not reflect the key characteristics of universal life insurance. The death benefit is not constant; it can be increased or decreased. Additionally, it does not terminate at retirement; instead, it typically remains in force as long as the premiums are paid. Furthermore, the payout does not depend on whether the cash value has been accessed; it is a separate element of the policy that can be utilized without affecting the death benefit itself.