Define "universal life" insurance.

Universal life insurance is characterized as a flexible permanent policy that combines both a death benefit and a cash value account. This type of insurance allows policyholders to adjust their premiums and the death benefit as needed, providing a level of adaptability that is not found in other types of permanent insurance. The cash value component grows over time and can be accessed by the policyholder, offering financial flexibility throughout their life.

In contrast, other types mentioned lack these features. Policies with fixed premiums typically do not allow for adjustments in payment, limiting the policyholder’s ability to manage their financial commitments according to changing needs. Term insurance is strictly temporary and does not build cash value, making it unsuitable for those looking for a long-term investment. Lastly, policies specifically for children are tailored for a distinct demographic and do not encompass the broader features of universal life insurance.