Which insurance type combines features of both term and whole life coverage and allows for adjustable factors?

The insurance type that combines features of both term and whole life coverage while allowing for adjustable factors is adjustable life insurance. This type of policy enables policyholders to modify the premium amount and the death benefit as their needs change over time.

Adjustable life insurance incorporates the flexibility of term insurance, wherein coverage can be obtained for a specified period, with the added component of whole life insurance, which offers lifelong protection and a savings component that accumulates cash value. The ability to adjust premiums and death benefits distinguishes adjustable life insurance from standard term or whole life policies, making it a hybrid option that caters to evolving financial and protection needs throughout an individual's life.

In contrast, term insurance provides pure protection for a designated time frame without cash value accumulation, while whole life insurance offers lifetime coverage with fixed premiums and a guaranteed cash value growth but lacks the flexibility found in adjustable life policies. Universal life insurance also offers some degree of flexibility but does so in a different structure focusing on cost of insurance and cash value, which isn’t representative of the hybrid nature of adjustable life. Hence, adjustable life insurance is best characterized by its combination of features from both term and whole life policies along with its adjustable benefit amounts.