Which type of insurance offers a combination of term and investment options?

Universal Life insurance uniquely combines the features of term insurance with an investment component. This type of policy provides the flexibility of adjustable premiums and death benefits, allowing policyholders to adapt their coverage according to their needs at different life stages.

Moreover, a portion of the premium payments goes toward a cash value account, which grows over time based on the insurance company's interest rates. This cash value can be accessed by the policyholder through loans or withdrawals, providing a means of borrowing against the policy or even using it to supplement retirement income if needed.

Unlike term life insurance, which offers solely a death benefit for a specific period without any investment component, universal life provides both protective coverage and the potential for cash accumulation. This combination is appealing for individuals who seek both insurance protection and a savings or investment feature in their life insurance strategy.