Which insurance policy allows the customer to select coverage and premium amount?

Universal life insurance is a flexible type of permanent life insurance that allows policyholders to adjust both the coverage amount and the premium payments throughout the life of the policy. This flexibility is a key feature, enabling customers to tailor their insurance to their specific needs and financial situations.

With universal life insurance, policyholders can increase or decrease the death benefit (subject to underwriting requirements) and modify premium payments, which can be particularly beneficial during different life stages or financial circumstances. The cash value component of universal life insurance also grows based on credited interest rates, providing an opportunity for savings accumulation. This versatility distinguishes universal life from whole life, term life, and endowment policies, which do not provide the same degree of customization regarding coverage and premium amounts.

Whole life insurance typically features fixed premiums and coverage amounts, while term life insurance provides coverage for a specific period with no cash value component. Endowment policies aim for a specific payout at the end of a set period or upon death, but they also lack the flexibility found in universal life policies.