Which type of policy allows for variable premium payments?

Universal life insurance is designed to provide flexibility in premium payments, allowing policyholders to adjust the amount and frequency of their premium contributions. This type of policy separates the insurance and investment components, enabling policyholders to pay varying premiums based on their financial situation and goals.

Unlike whole life insurance, which typically requires fixed premium payments throughout the life of the policy, or term life insurance, which has a set premium for a limited period, universal life insurance accommodates changes with the opportunity to increase or decrease premiums (subject to policy requirements). The option for variable premium payments is one of the defining features of universal life insurance, making it an attractive choice for individuals seeking more control over their insurance expenses.

Guaranteed issue insurance, on the other hand, offers coverage without requiring medical underwriting but typically involves fixed premium payments, thus not falling into the category of policies with variable premiums.