Which type of insurance combines features of whole life with universal life and investment elements?

The correct choice is Variable Universal Life Insurance, which effectively combines characteristics of both whole life and universal life policies along with an investment component.

Variable Universal Life Insurance offers policyholders the flexibility to adjust their premium payments and death benefits, similar to universal life insurance, while also allowing them to invest the cash value into a variety of investment options, akin to variable life insurance. This means that the cash value, as well as the death benefit, can fluctuate based on the performance of the selected investments, giving the policyholder the opportunity for potential growth beyond what is typical in standard whole life or universal life policies.

This hybrid structure is advantageous for those who seek not only permanent coverage but also the ability to participate in the market's performance, which can lead to higher returns and increases in cash value, thus addressing various financial goals over time.