Which type of insurance policy allows for a flexible premium payment schedule?

Universal life insurance is designed to offer policyholders flexibility in both premium payments and death benefits. This type of policy allows individuals to adjust their premium payments, including the option to pay more than the minimum in some periods while paying less or even skipping payments in others. The cash value component of universal life insurance grows based on the premiums paid and accumulates interest over time, which can further enhance policyholder flexibility.

In contrast, whole life insurance requires fixed premium payments for the life of the policy, providing stability but not flexibility. Term life insurance, on the other hand, is structured to provide coverage for a specified term and typically requires consistent payments throughout that term, without the added option to modify the premium schedule. Group life insurance policies are generally offered through employers and usually come with standardized premium amounts, lacking the individual flexibility found in universal life policies. Therefore, universal life insurance distinctly stands out for its adaptable approach to premium payments and death benefits.