What type of life insurance policy allows the policyowner to invest cash values in equities while having a flexible premium?

The choice pertaining to a life insurance policy that allows the policyowner to invest cash values in equities while maintaining a flexible premium is indeed variable/universal life insurance. This type of policy combines features of both variable life insurance and universal life insurance, allowing policyholders to allocate their cash value among a variety of investment options, including stocks, bonds, and mutual funds. This investment component means that the cash value can increase or decrease based on market performance.

In addition to the investment flexibility, variable/universal life insurance offers a flexible premium payment structure, meaning that the policyowner can adjust the frequency and amount of premium payments, subject to certain minimums. This adaptability is appealing for individuals whose financial situations may change over time.

Universal life, while also incorporating flexible premiums, typically does not provide the same level of investment options; rather, it generally has a fixed interest rate for cash value accumulation. Term life insurance, on the other hand, is primarily designed to provide death benefit protection for a specified term without any cash value component. Endowment policies, while offering a guaranteed payout either at death or a specified maturity, also do not provide the investment flexibility that characterizes variable/universal life insurance.