Name a type of permanent life insurance that adjusts premium amounts and death benefits.

Universal life insurance is a type of permanent life insurance that is characterized by its flexibility in adjusting both premium amounts and death benefits. This type of policy allows policyholders to modify their premium payments within specified limits, which can be beneficial if their financial situation changes over time. Additionally, the death benefit can often be increased or decreased based on the policyholder's needs, subject to underwriting requirements.

One of the key features of universal life insurance is its cash value component, which earns interest based on a credited rate determined by the insurer. This offers a savings element that grows over time, providing further flexibility in managing the insurance policy. The ability to adjust premiums and benefits makes universal life insurance a versatile option suitable for individuals who may want to adapt their life coverage as circumstances change.

In contrast, term life insurance provides coverage for a specified period without the investment or cash accumulation component. Whole life insurance, while providing permanent coverage, has fixed premiums and benefits over the life of the policy, lacking the adjustability feature of universal life. Variable life insurance allows for investment choices but typically has less flexibility in adjusting premiums compared to universal life.