Which of the following statements concerning universal life insurance are CORRECT?
I. Universal life has flexible premiums.
II. Universal life is based on the assumption that level annual premiums are to be paid throughout the insured's life.
III. The death benefit can fluctuate, but never below the guaranteed minimum face amount.
IV. Cash values can fluctuate and may even fall to zero.
A) I and II.
B) I and IV.
C) III and IV.
D) II and III.
Answer: B) I and IV.