Final answer:
Universal life insurance is the correct answer as it combines the elements of life insurance and investment, offering a cash value account and flexible premiums. Variable universal life also offers these features, but the best match given the options is universal life insurance.
Option 'b' is the correct.
Step-by-step explanation:
When considering life insurance options that involve investment characteristics and include a flexible premium, we need to look at policies that allow the policyholder to have an investment component as part of the insurance plan. In this case, the question is asking which of the listed life insurance products has both an investment component and allows for flexible premium payments.
Universal Life Insurance
Universal life insurance is a type of cash-value life insurance that offers both a death benefit and a savings element, which is known as a cash value. One of the key features of universal life insurance is the flexible premium, where the policyholder has some discretion to decide how much premium to pay within certain limits. As the cash value grows, it may also be used to alter premium payments, subject to policy conditions.
Other Options
Variable universal life insurance is similar to universal life with the added feature of investment options in various assets like stocks and bonds, which means it also has an investment characteristic and a flexible premium. On the other hand, limited payment life insurance and variable life insurance do not typically offer flexible premiums; limited payment life seeks to pay off the policy in a set number of years, while variable life has fixed premiums but an investment component like variable universal life.
Therefore, the option that accurately represents an insurance product with an investment characteristic and includes a flexible premium is C. Universal life.