In a universal life policy, what does Option 1 provide?

In a universal life policy, Option 1 provides a level death benefit that is equal to the policy's face amount. This means that the coverage amount remains constant throughout the life of the policy as long as the premiums are paid. This structure is appealing for individuals who want certainty regarding the amount their beneficiaries will receive upon their death, without fluctuations in death benefit amounts.

A level death benefit allows for predictability in financial planning for both the policyholder and the beneficiaries, and is often preferred by those who want to ensure that their loved ones receive a specific amount upon their passing, making it an essential feature for individuals looking for straightforward life insurance coverage.

While other options describe different scenarios—such as decreasing death benefits or benefits that reflect cash value—Option 1’s focus on maintaining a constant benefit aligns with the needs of many policyholders who prioritize stable protection over time.