What is a life insurance policy that is subject to a contract interest rate called?

A life insurance policy subject to a contract interest rate is referred to as universal life insurance. This type of policy offers flexibility in terms of premium payments and death benefits, while also accumulating cash value based on a specific interest rate set by the insurer. The interest rate can vary over time, but it is guaranteed to not fall below a certain minimum.

Universal life insurance provides policyholders with the ability to adjust their premiums and death benefits within certain limits, which is distinct from other types of policies. This flexibility, combined with the cash value component that grows over time at a contractual interest rate, makes universal life policies unique in the realm of life insurance products.