Question

briellas life insurance comparison
briella is a 40 - year - old accountant with two children. she wants to purchase life insurance to ensure her familys financial security in the event of her death. briella is researching a term life insurance policy and a universal life insurance policy. before making a decision, she wants to weigh the benefits and drawbacks of both options.
briellas life insurance options,option 1: term life insurance,option 2: universal life insurance
premium,$30/month,$150/month
coverage,25 years,lifetime
death benefit,$400,000,$400,000
cash value,none,grows based on investment performance, with a guaranteed minimum interest rate of 2%
what is an advantage of the universal life insurance option?
it accumulates cash value and has a guaranteed interest rate.
it offers a limited coverage period.
it requires lower premiums than the term life insurance option.
it has a fixed premium with no cash value.

Explanation:

Universal life insurance can accumulate cash - value based on investment performance with a guaranteed minimum interest rate, which term life insurance lacks.

Answer:

It accumulates cash value and has a guaranteed interest rate.