What is another name for Interest Sensitive Whole Life insurance?

Interest Sensitive Whole Life insurance is also known as Universal Life Insurance because both involve flexible premium payments and an interest-sensitive cash value component. In Universal Life policies, the cash value earns interest based on current market rates, allowing policyholders to adjust their premium payments and death benefits over time. This flexibility and the ability to accumulate cash value based on interest rates differentiate it from other whole life products.

The other types of insurance listed do not share these characteristics. Variable Life Insurance has a cash value component that can be invested in various funds, meaning its value will vary based on investment performance. Term Life Insurance provides coverage for a specified period without any cash value accumulation, and Whole Life Insurance typically offers fixed premiums and guaranteed death benefits with a cash value that grows at a predetermined rate.