Which of the following is NOT a characteristic of a universal life insurance policy?

A universal life insurance policy is designed with flexibility in mind, making it distinct from many other types of life insurance. One of its defining characteristics is the ability to adjust death benefits to suit the policyholder’s needs, which falls under the aspect of having a flexible death benefit. Additionally, universal life policies allow for flexible premiums, meaning policyholders can decide how much and how often they want to pay premiums, within certain guidelines.

Moreover, these policies build cash value over time, providing a savings component that can grow based on interest rates set by the insurer.

The option regarding a fixed surrender value does not align with the characteristics of a universal life insurance policy. Unlike whole life insurance, which typically has a guaranteed cash value that can be withdrawn or surrendered at a fixed amount, universal life policies do not guarantee a specific surrender value. Instead, the cash value in a universal life policy is variable and can change with the returns on investments made by the insurer. This fluidity is a critical aspect of the policy's structure, making option B the correct choice as it does not represent a feature of universal life insurance.