What type of life insurance combines aspects of term and savings components?

The answer identified is correct because universal life insurance is designed to combine the features of term life insurance with a savings or cash value component. This type of policy provides death benefit protection similar to term life, but it also incorporates a savings element that can accumulate cash value over time.

One of the key features of universal life is its flexibility; policyholders have the option to adjust their premiums and death benefits. The cash value component earns interest based on current market rates, which can enhance the policy's value over time. Additionally, the policyholder can withdraw or borrow against the cash value, adding a layer of financial utility that term life lacks because term policies do not build cash value.

In discussing why the other options do not fit the criteria: term life insurance provides only death benefit coverage for a specified period with no savings or cash accumulation, whole life insurance has a permanent death benefit and a guaranteed cash value but with less flexibility in premium payments compared to universal life, and endowment policies typically pay a lump sum after a specific period or upon death, functioning more like a savings instrument than a standard life insurance policy. Thus, universal life stands out as the option that truly combines elements of both term insurance protection and a savings feature.