Which type of policy contains both a minimum and target premium?

Under Pennsylvania Life Insurance principles,universal life insurancepolicies are characterized by flexible premiums and adjustable death benefits. These policies contain both aminimum premiumand atarget premium. The minimum premium is the least amount required to keep the policy in force based on current assumptions, while the target premium is the recommended amount that will adequately fund the policy and maintain coverage as intended.

Universal life allows policyowners to vary premium payments within contract limits. Paying only the minimum premium may cause cash values to erode, while paying the target premium helps build sufficient cash value to support long-term coverage. This dual-premium structure is unique to universal life and is emphasized in Pennsylvania insurance licensing materials.

Whole life, graded premium life, and adjustable life policies do not operate with a minimum and target premium structure. Therefore, the correct and verified answer isC. universal life.