Question

What type of policy is the result of combining the flexible characteristics of universal life insurance with the policyholder’s ability to allocate premiums to the insurer’s separate account?

1. Limited payment whole life insurance
2. Variable universal life insurance
3. Indexed universal life insurance
4. Single premium whole life insurance

Answer 1

The type of policy that combines the flexible characteristics of universal life insurance with the policyholder’s ability to allocate premiums to the insurer’s separate account is **2. Variable universal life insurance**. This policy allows policyholders to have flexible premium payments and the ability to invest in various separate account options, which can fluctuate in value based on market performance.