Which life insurance policy allows for flexible premium payments and adjustable death benefits?

Universal Life Insurance is specifically designed to offer policyholders both flexible premium payments and adjustable death benefits. This type of policy combines the features of both term and whole life insurance, allowing the insured to change their premium payments and death benefit amounts as their financial needs or circumstances change over time.

The flexibility in universal life insurance means that policyholders can decide how much to pay in premiums, above a required minimum, and can adjust the death benefit amount, within certain limits. This adaptability is particularly beneficial for individuals whose financial situations may evolve, as it allows them to manage their insurance coverage without needing to purchase a new policy.

In contrast, other types of life insurance policies do not offer this same level of flexibility. Term life insurance is primarily focused on providing coverage for a specified period and does not accumulate cash value or allow for premium adjustments. Whole life insurance features fixed premium payments and death benefits, along with a guaranteed cash value component, which cannot be adjusted easily. Variable life insurance allows for investment options within the policy, but the death benefit and premiums are more closely tied to the performance of underlying investments rather than being inherently adjustable.