Which insurance coverage allows policyholders to choose between different investment options within their policy?

Variable life insurance allows policyholders to choose among various investment options within their policy. This type of life insurance combines a death benefit with an investment component, giving policyholders the ability to allocate their premiums into different investments, such as stocks, bonds, or mutual funds.

This flexibility enables them to potentially grow the cash value of their policy over time, depending on the performance of the chosen investment options. Additionally, the death benefit can fluctuate based on the success of these investments, allowing for growth that isn't present in more traditional life insurance products.

In contrast, whole life insurance provides a fixed premium, a guaranteed death benefit, and a cash value accumulation that grows at a predetermined rate, offering no investment choice or flexibility. Term life insurance solely provides a death benefit for a specific period with no cash value component or investment options. Endowment insurance provides a death benefit as well as a maturity benefit after a specified period but also does not include investment choices like those found in variable life insurance. Thus, variable life insurance is unique in offering the policyholder the option to tailor their investments within the policy.