Pearson VUE Life Insurance Practice Exam

The use of specific terminology in advertisements for life insurance is governed by regulatory guidelines to ensure clarity and to prevent misleading information. "Universal life plan" is a term that accurately describes a type of flexible permanent life insurance policy, which allows policyholders to adjust their premiums and death benefits. This kind of policy is well-known within the insurance industry and has distinct features that can be clearly communicated in advertisements for consumer understanding.

In contrast, terms like "whole life package" may imply a composite product or offer something that doesn't exist within industry definitions, which could mislead consumers. "Term life policy" and "temporary life coverage" may not convey the permanence or specific structure associated with universal life, and thus may not be as suitable for advertising depending on the context. The specificity and proper categorization conveyed by "universal life plan" make it a more appropriate choice for use in advertisements aimed at educating consumers about their options in life insurance.