Which type of life insurance has flexible premiums and can increase its death benefit?

Universal life insurance is designed with great flexibility in mind, allowing policyholders to adjust their premiums and death benefits. Unlike whole life insurance, which requires fixed premium payments, universal life insurance permits policyholders to pay varying amounts of premiums at different times, according to their financial situation. This flexibility is particularly appealing for those whose income may change.

Additionally, universal life insurance policies can increase the death benefit, subject to certain conditions. The policyholder can choose to raise the death benefit amount, which can be beneficial in adapting to changing needs over time, such as the addition of dependents or an increase in liabilities.

Whole life insurance offers fixed premiums and benefits, while term life insurance provides coverage for a specific period without options for premium or benefit changes. Variable life insurance allows for some investment choice but does not inherently offer the same flexibility in premiums as universal life does. Thus, universal life insurance stands out for its combination of flexible premium payments and an adjustable death benefit, making it the correct choice in this context.