Which type of life insurance policy offers flexibility in premium payments and the ability to adjust the death benefit?

The type of life insurance policy that offers flexibility in premium payments and the ability to adjust the death benefit is universal life insurance. This policy allows policyholders to vary their premium payments, meaning they can pay more or less than the scheduled premium as long as they maintain enough value in the cash account to cover expenses.

Additionally, universal life insurance typically includes a death benefit that can be adjusted by the insured. This means that policyholders can increase or decrease their death benefit feature based on their changing needs throughout their life. This level of flexibility is particularly beneficial for those whose financial situations may vary over time, allowing them to adapt their insurance coverage to best fit their current circumstances.

Other types of life insurance, such as whole life and term life, do not offer the same level of flexibility. Whole life policies generally require fixed premium payments and provide a guaranteed death benefit that does not change, while term life policies provide coverage for a specified term with fixed premiums and no cash value component, thus lacking the ability to adjust death benefits and premiums dynamically. Variable universal life does offer flexible premiums and death benefit adjustments like universal life, but it adds an investment component that requires more engagement and understanding from the policyholder regarding investment choices and market risks.