Which characteristic is typical of universal life insurance?

Universal life insurance is characterized by its flexible premiums and the inclusion of a cash value component. This flexibility allows policyholders to adjust their premium payments and the death benefit amounts throughout the life of the policy. Unlike traditional life insurance products where premiums are typically fixed, universal life insurance provides the policyholder with the opportunity to pay more or less depending on their financial situation or needs.

The cash value portion grows over time based on interest accrued, which the policyholder can utilize through loans or withdrawals, further enhancing its attractiveness as a financial instrument. This combination of flexibility and growth potential in the cash value is what distinctly defines universal life insurance, making choice B the correct answer.