Which statement regarding universal life insurance is NOT accurate?

Universal life insurance is designed with flexibility in mind, allowing policyholders to adjust both their premiums and death benefits within certain limits. This flexibility is one of the defining features of universal life policies. Premiums can indeed vary from year to year, and policyholders have the option to increase or decrease the amount of the death benefit, subject to insurability requirements.

Additionally, universal life insurance accumulates cash value over time, which grows based on interest rates determined by the insurance company. Policyholders can also borrow against this cash value, providing them with access to funds if needed.

The statement regarding policy loans not being permitted is not accurate because, in reality, policy loans are allowed in universal life policies. This feature provides additional financial flexibility for the policyholder, which further emphasizes the overall adaptability of this insurance type.

In summary, the characteristics that underline universal life insurance include flexible premiums, the potential for cash value growth, and adjustable death benefits, while the capability to take loans against the policy is also a valid aspect.