Which type of life insurance involves a flexible premium structure?

The type of life insurance that involves a flexible premium structure is universal life insurance. This type of policy allows policyholders to adjust their premium payments and the death benefit amount based on their changing financial needs and goals.

Universal life insurance is designed to provide not only a death benefit but also the potential to accumulate cash value over time. The flexible premium feature means that policyholders can choose how much they want to pay in premiums, within certain limits, which can be advantageous as their financial situation changes. As a result, they can increase or decrease their premium payments as their financial circumstances permit.

In contrast, term life insurance generally has fixed premiums for the coverage duration chosen, while whole life insurance features fixed premiums and guaranteed cash value growth. Fixed life insurance, while not a standard term in the industry, would typically imply a policy with a set structure for premiums, making it less flexible than universal life insurance. Thus, universal life insurance stands out as the option that offers premium flexibility to policyholders.