Which type of insurance policy allows flexibility in premiums and death benefits?

Universal life insurance is designed to provide policyholders with flexibility regarding premium payments and death benefits. This type of insurance allows individuals to adjust the amount and frequency of their premium payments, making it possible to increase or decrease their contributions based on their financial situation or needs.

Additionally, the death benefit can be modified, allowing policyholders to choose between a level death benefit or an increasing death benefit option. This adaptability is particularly beneficial for those who might have changing financial situations or who want their insurance coverage to grow as their needs evolve over time.

In contrast, term life insurance typically provides a death benefit for a specified period without the flexibility to adjust premiums or benefits. Whole life insurance generally has set premium payments and a guaranteed death benefit, leading to less flexibility. Endowment life insurance pays out a benefit after a specific period or upon death, but it does not offer the same level of premium and benefit flexibility as universal life insurance.