What is a key feature of a universal life insurance policy?

A key feature of a universal life insurance policy is its flexible premium payments. This flexibility allows policyholders to adjust the amount and timing of their premium payments within certain limits, rather than being locked into a rigid payment schedule. This characteristic makes universal life policies appealing to individuals whose financial situations might change over time, as they can increase or decrease their contributions based on their current needs and financial goals.

Unlike whole life insurance, which typically has fixed premiums, universal life insurance provides this adaptability, enabling policyholders to maintain coverage even during periods of financial difficulty or to take advantage of improved financial situations by contributing more when they can. This can help policyholders manage their cash flow and funding strategy more effectively over the life of the policy.

The other features mentioned in the question do not accurately describe the defining characteristic of universal life insurance. Fixed premium amounts are more associated with whole life policies, guaranteed cash value growth is typical of whole life but not necessarily of universal life, and having no cash value component is characteristic of term life insurance rather than universal life.