Which of the following statements is correct?

A. Policyholder cannot earn market rate of interest on his cash value

B. In universal life plan, policyholder can vary payments of premium

C. Universal life plan is a traditional plan of assurance

D. Variable life insurance is a temporary plan of insurance

Answer: Option B

Solution(By Examveda Team)

Universal life can provide you with a variety of different payment options, including a flexibility of changing your death benefits, as well as the potential to accumulate cash value over time.
Hence, option (2) is correct.