Final answer:
Variable life insurance combines investment choices with Term coverage, offering both a death benefit and an investment feature, where cash value can be invested in various options similar to mutual funds.
Step-by-step explanation:
The policy that combines investment choices with a form of Term coverage is Variable life insurance. Unlike Term life insurance, which only provides coverage for a specified term, or Whole life insurance and Universal life insurance, which have a cash value component but fixed investment options, Variable life insurance provides both death benefit protection and an investment feature. The premiums you pay into a Variable life insurance policy are allocated towards the policy's death benefit and cash value, but the cash value can be invested in a variety of investment options, similar to mutual funds, allowing for the potential growth of cash value through market performance.