What distinguishes Universal Life insurance from Whole Life insurance?

Universal Life insurance is distinguished from Whole Life insurance primarily by its flexibility in adjusting premiums and death benefits. In Universal Life policies, policyholders have the ability to modify the premium amounts and the face value of the death benefit, which allows them to tailor the policy to their changing financial needs over time. This flexibility can be particularly beneficial for individuals whose financial circumstances may fluctuate.

In contrast, Whole Life insurance provides more structure, offering fixed premiums and a guaranteed death benefit, which does not allow for adjustments in the same way. While Whole Life policies build cash value over time, their premiums and benefits are predetermined and remain constant throughout the life of the policy. This rigidity makes them less adaptable compared to Universal Life policies.

Therefore, the ability of Universal Life insurance to adjust premiums and death benefits is a key factor that differentiates it from Whole Life insurance, making option C the correct answer.