Which type of life insurance merges adjustable premiums with a savings account?

Universal variable life insurance is designed to provide both a death benefit and a cash value component that grows over time. This type of insurance allows policyholders to adjust their premium payments and the face amount of the death benefit within certain limits. The savings component, or cash value, can be invested in various options, potentially increasing its value based on investment performance.

This flexibility in premiums and investment choices distinguishes universal variable life insurance from other types, such as whole life insurance, which typically has fixed premiums and guaranteed cash value growth, or term life insurance, which does not have a cash value component at all. Final expense insurance is primarily intended to cover funeral and burial costs and usually does not incorporate a savings or investment element. Therefore, universal variable life insurance uniquely combines adjustable premiums with a savings account feature, making it the correct answer.