Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

Universal life insurance is designed to provide policyholders with flexibility in adjusting their coverage and premiums over time. This type of policy combines insurance protection with a cash value component, allowing individuals to modify their death benefit as their needs change. For instance, if S experiences a life event like marriage or the birth of a child, they can increase the coverage amount. Conversely, if financial circumstances change, the policyholder can decrease the coverage or adjust the premium payments accordingly.

Whole life insurance, while it provides a guaranteed death benefit and cash value accumulation, does not typically allow for adjustments to coverage after the policy is issued. Term life insurance offers coverage for a specified period but lacks the flexibility for modifications during the term. Major medical insurance pertains to health coverage rather than life insurance options. Therefore, the features of universal life make it the appropriate choice for someone looking to adapt their life insurance coverage over time based on their changing needs.