A client wants the ability to adjust premium payments and the death benefit amount after policy issue, while the cash value earns interest at a rate periodically declared by the insurer. Which policy best matches these needs?

Why this is the answer

Universal life was designed in the 1980s to offer two structural innovations over whole life: premium flexibility (the owner can pay more, less, or skip a premium so long as cash value covers the cost-of-insurance charges) and an adjustable face amount (the death benefit can be raised or lowered subject to underwriting). The cash value earns a current declared interest rate set periodically by the insurer, with a guaranteed minimum floor. Whole life lacks both flexibility features. Term life has no cash value. Variable life invests cash value in separate-account subaccounts, not at a current declared rate. Per the Florida Agent's Health & Life Exam Content Outline §I.B.1.