Which type of life insurance policy provides investment options along with flexible premiums?

Variable universal life insurance is a specialized type of policy that offers both investment opportunities and flexible premiums. This policy combines characteristics of whole life insurance, which provides lifelong coverage, with investment components similar to those found in mutual funds. Policyholders can allocate a portion of their premium payments into various investment options, such as stocks, bonds, or money market accounts, allowing the policy's cash value to grow based on the performance of these investments.

Additionally, variable universal life insurance offers flexibility in premium payments, meaning that policyholders can adjust the amount and frequency of their premium contributions within certain limits. This flexibility can be beneficial for individuals who experience changes in their financial situation or want to tailor their coverage according to their needs.

Whole life insurance typically requires fixed premium payments and focuses primarily on providing a guaranteed death benefit and cash value accumulation. Term life insurance, on the other hand, is purely protection-based without any investment component, and it has a limited duration. Universal life insurance provides some flexibility in premiums but generally does not offer the same range of investment options that variable universal life insurance does, making the latter the correct choice for this question.