What is the primary benefit of adjustable premiums in universal life policies?

The primary benefit of adjustable premiums in universal life policies is the ability to change the premium amount as needed. This flexibility allows policyholders to adjust their premiums based on their current financial situation or changing needs without having to purchase a new policy. For instance, if a policyholder experiences a change in income, they can reduce their premium payments to maintain coverage while managing their budget. Similarly, if they have extra funds available, they can increase their premium payments, which can lead to a higher cash value accumulation within the policy.

This adjustability is a significant feature that distinguishes universal life policies from more traditional types of life insurance, which usually have fixed premium requirements. By allowing more personalized control over premium payments, policyholders can better align their life insurance coverage with their financial goals and circumstances.