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flexible premium variable life insurance. Definition. A form of life insurance that combines adjustable features from other types of policies into one instrument. First, it allows premium schedules to be designed by the policy owners in both frequency and amount within certain restrictions. Premiums can also be suspended and restarted at the owner's discretion.
These extra premiums are held and invested by the insurer, creating the cash value of the policy. Limited Payment Whole Life Insurance. If you want to pay premiums for a limited time, the limited payment whole life policy gives you lifetime protection but requires only a limited number of premium payments.