Which policy lets the owner change premium and death benefit within set limits?

The policy that allows the owner to adjust both the premium and the death benefit within specified limits is Universal Life insurance. This type of policy offers flexible premium payments and the ability to change the death benefit amount, which provides policyholders with greater control over their insurance coverage to meet their changing financial needs over time.

Universal Life combines features of term and whole life insurance, allowing for a savings component that can accumulate cash value. As policyholders may experience changes in their financial situation or insurance needs, the flexibility to adjust premiums and death benefits is particularly valuable. Since the characteristics of Universal Life align with the capabilities of premium and benefit adjustments, it stands out as the correct choice for this question.

Other types of policies, such as Endowment, Term Life, and Variable Life, do not provide the same degree of flexibility in changing these parameters. An Endowment policy generally has a fixed maturity date that pays out a death benefit or a maturity benefit, limiting modifications. Term Life offers coverage for a specified period without cash value accumulation, and Variable Life has investment components but lacks the same comprehensive adjustability regarding premiums and death benefits as Universal Life.