Final answer:
A separate account is a part of variable life, adjustable life, and universal life insurance policies. It allows policyholders to invest a portion of the cash value in various investment options.
Step-by-step explanation:
A separate account is a part of all of the above type policies, which include variable life, adjustable life, and universal life insurance policies.
A separate account refers to the portion of the policy's cash value that can be invested by the policyholder in various investment options. The separate account allows policyholders to potentially earn higher returns based on the performance of their chosen investments.
For example, in variable life insurance, the policyholder has the flexibility to choose how the cash value is invested, such as in stocks, bonds, or mutual funds. In adjustable life insurance, the policyholder can adjust the coverage and premiums as their needs change. In universal life, the policyholder can also adjust the premiums and death benefits, while also having the ability to accumulate a cash value.