Which type of life insurance typically builds cash value but also has flexible premiums?

Universal life insurance is a type of permanent life insurance that offers both a death benefit and a cash value component, with the added benefit of flexible premiums. This means policyholders can adjust their premium payments and the amount of the death benefit based on their financial circumstances and goals. The cash value of a universal life policy grows over time within the policy, and policyholders have the option to take loans against the cash value or use it to pay premiums.

In contrast, term life insurance provides coverage for a specified period and does not accumulate cash value, making it unsuitable for someone looking for both life coverage and an investment component. Whole life insurance also builds cash value and offers fixed premiums, which does not provide the flexibility in premium payments that universal life does. Decreasing term insurance offers coverage that decreases over time, typically for things like mortgage protection, and also does not accumulate cash value. Thus, universal life insurance stands out as the best option for individuals seeking cash value accumulation alongside flexible premium payments.