Final answer:
The insured purchased variable life insurance, where flexible premiums are invested into a separate account.
Step-by-step explanation:
The type of insurance product that the insured purchased is called variable life insurance.
Variable life insurance is a type of permanent life insurance that allows the insured to have flexible premiums and invest them into a separate account known as the cash value or separate account. The cash value can be invested in various investment options, such as stocks, bonds, or mutual funds. The returns on these investments can fluctuate based on market performance.
With variable life insurance, the insured has the potential to accumulate a higher cash value and potentially receive higher death benefits. However, there is also a higher level of risk involved compared to other types of life insurance, as the cash value is subject to market volatility.