Which insurance option combines adjustable premiums, coverage, and a savings account?

Universal variable life insurance is a unique insurance product that offers a combination of adjustable premiums, flexible coverage, and a cash value component that serves as a savings account. This type of insurance allows policyholders to not only secure life insurance protection but also to accumulate a cash value over time, which can be invested in various subaccounts similar to mutual funds.

The adjustable premium feature means that policyholders can choose how much they want to pay in premiums, as long as they meet the minimum required to keep the policy active. The coverage amount can also be adjusted based on the policyholder’s changing needs, allowing for increased or decreased death benefits.

Moreover, the cash value grows on a tax-deferred basis, providing a financial resource that can be accessed through loans or withdrawals if needed. This combination of features makes universal variable life insurance a flexible option for those looking to blend insurance protection with savings and investment elements.