Final answer:
An Economatic policy combines whole life and convertible term insurance, with premiums that start lower and can increase as more whole life insurance is purchased using the policy's accrued cash value.
Step-by-step explanation:
The policy that is a combination of whole life and convertible term, and has lower premiums in early policy years and higher premiums in later years is known as Economatic. An Economatic policy is a whole life policy that combines a basic amount of whole life with an additional term insurance component. As cash value accrues in the whole life portion of the policy, the policy is designed to use that cash value to purchase more whole life insurance, ideally decreasing the term insurance portion over time. Thus, this kind of policy starts with lower premiums, but as the term portion decreases and more whole life insurance is purchased, the premiums can increase.
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