What are the death benefit options in universal life policies?

In universal life insurance policies, the death benefit options are designed to provide flexibility based on the policyholder's needs and goals. The correct answer highlights two primary options:

Option A provides a level death benefit, which means that the death benefit remains constant throughout the life of the policy. This is particularly beneficial for policyholders who want to ensure that their beneficiaries receive a fixed amount upon their death, allowing for financial planning and stability.

Option B features an increasing death benefit, which allows the death benefit to rise over time. This increase typically correlates with the accumulated cash value of the policy, meaning that as the policyholder contributes more to the cash value, the total death benefit grows. This option can be appealing for individuals who anticipate needing greater financial support for their beneficiaries as inflation changes the value of money or as their family's financial needs evolve.

These two options in universal life insurance provide policyholders with the ability to tailor their coverage based on both immediate and long-term needs, making it a versatile financial tool.