When an insured has a universal life policy, what can they do with the accumulated cash value?

With a universal life insurance policy, the accumulated cash value provides unique flexibility for the policyholder. This cash value can be utilized in various ways, which contributes to the policy's appeal.

The option that states the insured can use the accumulated cash value to pay premiums or withdraw cash accurately reflects the features of universal life policies. Policyholders often have the option to withdraw from the cash value, which can provide immediate access to funds if needed. Additionally, the cash value can be used to cover premium payments, which can help maintain the policy in force even if the policyholder is temporarily unable to pay the premiums out of pocket.

The ability to manage the cash value in these ways is a key aspect of universal life insurance, as it lends itself well to the policyholder's financial planning and cash flow management. This flexibility can be advantageous in times of financial need or when ongoing premium payments are difficult for the insured.