Which statement correctly describes a unique feature of universal life insurance compared to traditional whole life insurance?

The correct choice accurately reflects the nature of universal life insurance in contrast to traditional whole life insurance. In universal life insurance, the cash value can be accessed more flexibly than in whole life insurance, which typically requires going through a formal partial surrender process. This is distinct from traditional whole life policies where accessing the cash value often involves specific conditions and limitations.

In universal life policies, policyholders have the flexibility to adjust premiums and death benefits, which allows for varying strategies in managing cash value. Consequently, the design of universal life insurance facilitates a more dynamic interaction with cash value, making partial surrenders a common method for accessing funds.

In comparison, the other options are not characteristic features of universal life insurance. For instance, while policy loans can be a feature of both types of insurance, the statement regarding loans generally being available without restrictions does not accurately reflect the terms typically associated with such loans, which often bear interest and may affect the death benefit. Similarly, the concept of fixed premiums applies more to traditional whole life insurance, where premiums are generally set and unchanging, unlike universal life where premium payments can vary.