Which feature distinguishes a universal life policy from a whole life policy?

The feature that distinguishes a universal life policy from a whole life policy is the flexible premium schedule. Universal life insurance offers policyholders the ability to vary their premium payments, allowing them to pay more than the minimum required or skip payments entirely as long as there is sufficient cash value in the policy to cover costs. This flexibility in premium payments is a key characteristic of universal life policies, which contrasts with whole life policies that typically require fixed premium payments throughout the life of the policy.

Additionally, universal life insurance provides more flexibility in adjusting the death benefit, which can also be increased or decreased based on the policyholder's needs, whereas whole life policies generally have a fixed death benefit.

This adaptability of universal life policies in terms of both premiums and benefits makes them distinct from whole life policies, which offer a more structured and predictable arrangement.