Texas Life Agent Practice Exam 2025 – Comprehensive All-in-One Guide to Master Your Certification!

The correct choice is C, which refers to Universal Life insurance. This type of policy is characterized by its combination of term insurance elements and a cash value component. Universal Life insurance offers a flexible premium structure, allowing policyholders to adjust the amount and frequency of their premium payments within certain limits. Additionally, this policy accumulates cash value over time, which can grow based on a credited interest rate that may vary according to market conditions.

The flexibility of Universal Life is a significant benefit, as it allows the insured to adapt their coverage and premium payments to their changing financial circumstances. This is in contrast to traditional Whole Life policies, which typically have fixed premiums and guaranteed cash values. While Variable Life policies also offer investment options for cash accumulation, they come with more risks related to the performance of the underlying investment choices. In summary, Universal Life insurance uniquely combines term protection with flexibility and cash value accumulation, making it a versatile choice for many individuals.