What type of life insurance offers flexible premiums and the option for cash value investment?

The reason a variable universal policy is the correct choice lies in its unique combination of features that cater to policyholders seeking both flexibility and potential investment growth. This type of life insurance allows the policyholder to adjust their premium payments within certain guidelines, providing the flexibility to increase or decrease contributions based on their financial situation or preferences.

Moreover, a variable universal policy allows for cash value accumulation through a variety of investment options, which can include stocks, bonds, or mutual funds. The cash value component is not guaranteed and can fluctuate based on the performance of the chosen investments, offering potential for greater growth compared to other policies that may have fixed cash values. This blend of flexibility in premium payments and the opportunity for variable cash value investment sets the variable universal policy apart from other types of life insurance.