Which option allows a level death benefit while cash value increases in a universal life policy?

In a universal life insurance policy, there are typically two death benefit options that a policyholder can choose from: Option A and Option B. When a policy includes a level death benefit feature while the cash value increases, it means that the death benefit remains constant throughout the life of the policy.

Under Option A, the death benefit is a fixed amount, which does not increase as the cash value grows. This option is advantageous for policyowners who want a predictable death benefit for their beneficiaries while still allowing the cash value component to accumulate over time. The growth in cash value comes from the premiums paid, which can contribute to the policy's performance based on interest rates and the insurance company's portfolio performance.

In contrast, other options (like Option B) often involve an increasing death benefit, which could mean that as the cash value increases, so does the total death benefit. However, this doesn’t align with the need for a level death benefit. Therefore, Option A is indeed the correct choice, as it uniquely allows for an adherence to the specified parameters of providing a consistent death benefit with simultaneous cash value growth.