Which action is NOT possible with a Universal Life Policy?

A Universal Life Policy is designed to offer flexibility in premium payments, cash value accumulation, and death benefit adjustments. One of the core features of this type of policy is that policyholders can adjust their premium payments within certain guidelines set by the insurer. This allows for adaptability to changes in financial circumstances.

Additionally, Universal Life Policies allow for the accumulation of cash value over time. The cash value grows on a tax-deferred basis, which is another attractive feature for policyholders looking to build a financial asset within the life insurance policy.

Changing the death benefit is also a significant characteristic of Universal Life. Policyholders can choose to increase or decrease the death benefit, subject to certain conditions, which offers further customization to fit their needs over time.

On the other hand, applying premiums as a credit against income tax is not a function of a Universal Life Policy. Premiums paid on life insurance policies typically do not qualify for immediate tax deductions like some other financial instruments might. This means that while the cash value grows tax-deferred, the initial premiums are not directly credited against income tax. Thus, this action is not possible with a Universal Life Policy.