Universal life insurance was introduced in what year?

• A. 1969
• B. 1979
• C. 1989
• D. 1999

Answer: (B)

Universal life insurance represents a shift to flexible premium and adjustable death benefit design, with a cash value that earns credited interest. This flexibility and cash-value structure were developed in response to changing market conditions and consumer demand in the late 1970s. In 1979, insurers introduced universal life in its recognizable form, creating a policy that lets policyowners adjust premiums and death benefits while the cash value grows based on credited interest. That year marks the birth of the product category, which is why it’s the correct reference point. The other years are not when universal life was first brought to market, as they occur either before the concept existed or well after its initial introduction.