Which of the following statements about universal life insurance is NOT true?

Universal life insurance is designed to offer flexibility in premium payments and death benefit options, as well as a cash value component that can grow over time. The key characteristic of this type of insurance is its flexible premium payment structure, which allows policyholders to adjust how much they pay into the policy, as long as the costs associated with insurance protection are adequately covered.

The statement about policy loans not being permitted is not true because universal life insurance policies typically allow policyholders to take out loans against the cash value that has accumulated in the policy. This feature is an attractive aspect of universal life insurance, giving policyholders access to funds if necessary, while still maintaining the life insurance coverage.

The deduction of mortality charges from the cash value each month is accurate, as these charges are necessary to cover the cost of insurance based on the insured's age and health status. The flexible premium feature inherently relies on the idea that the premiums can be varied as long as they are sufficient to cover the insurance costs. Additionally, universal life policies include a provision that typically states how much of the premium contributes to the cash value, which is an important part of managing and understanding the policy’s growth and costs.