Which statement concerning universal life insurance is true?

Universal life insurance is designed with flexibility that distinguishes it from other types of life insurance. One of the key features of a universal life policy is that it provides transparency in how premium payments are allocated. When policyholders pay their premiums, a portion of those funds goes toward the cost of insurance, and another portion accumulates as cash value. Universal life policies typically outline exactly how much of the premium is used for administrative costs and how much contributes to the cash value and death benefit. This feature allows policyholders to understand better the financial dynamics of their insurance policy, making option C the accurate statement regarding universal life insurance.

This distinct transparency regarding expenses is what makes universal life insurance appealing, as policyholders can adjust their premium payments and see how those adjustments influence the accumulation of cash value and the overall benefits of their policy.