Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested?

A variable universal policy is designed to provide policyholders with flexibility in multiple aspects of their insurance plan. It combines the features of a universal life insurance policy with the investment options found in variable life insurance.

With a variable universal policy, the policyholder can adjust the premiums they pay and the amount of the death benefit at any time. This adaptability allows policyholders to align their insurance coverage with changing financial needs or situations. Furthermore, the cash value component of the policy can be invested in a variety of investment accounts, often including stocks, bonds, and mutual funds. This investment flexibility enables policyholders to potentially increase the cash value of their policy based on how well their chosen investments perform.

This combination of flexible premiums, adjustable death benefits, and choice in investment options perfectly outlines the characteristics of a variable universal policy, making it stand out as the correct answer to the question. Other types of policies, such as adjustable life and modified whole life, do not offer the same level of investment flexibility or the dual nature of providing both insurance coverage and investment growth.