Which type of life insurance is characterized by a flexible premium that can increase or decrease?

Universal life insurance is characterized by a flexible premium that can increase or decrease according to the policyholder's needs and financial situation. This type of insurance combines a death benefit with a savings component that earns interest. The policyholder has the ability to adjust both the premium payments and the death benefit, allowing for greater flexibility than traditional whole life insurance.

In contrast, term life insurance is strictly protection for a specific period, with fixed premiums and no cash value accumulation, while whole life insurance has fixed premiums and offers a guaranteed death benefit along with a cash value that grows at a set rate. Burial insurance, typically a type of final expense insurance, is designed to cover funeral costs and often has lower face values, and it usually does not offer the flexible premium feature found in universal life insurance. This flexibility in universal life insurance allows policyholders to manage their coverage and funds more dynamically, making it suitable for those whose financial circumstances or insurance needs may change over time.