Which type of insurance policy generally allows flexible premium payments along with a cash value?

Universal Life Insurance is characterized by its flexible premium payments and accumulation of cash value. This type of policy provides policyholders with the ability to adjust their premium payments and the death benefit, as well as the potential for cash value growth based on interest rates set by the insurer.

Unlike term life insurance, which does not accumulate any cash value and only provides coverage for a specified term, universal life policies combine a life insurance component with a cash savings component. Whole life insurance, on the other hand, typically has fixed premium payments and a set cash value growth schedule, making it less flexible in comparison to universal life policies. Variable life insurance allows the policyholder to choose investment options for the cash value, but it does not inherently provide the same level of premium flexibility as universal life.

In essence, the key distinguishing feature of universal life insurance is the combination of flexible premiums and the cash value component, allowing for both adaptability in payment and potential growth of savings over time.