What type of life insurance incorporates flexible premiums and an adjustable death benefit?

The type of life insurance that incorporates flexible premiums and an adjustable death benefit is universal life insurance. Universal life offers policyholders the ability to adjust both their premium payments and the death benefit amount. This means that if a policyholder needs to lower their premium due to financial constraints, they can do so within certain limits, while also having the option to increase the death benefit based on changing needs or circumstances.

The flexibility of universal life is beneficial because it allows policyholders to respond to their financial situations over time. Additionally, any money deposited above the required premiums can accumulate as cash value, which the policyholder may access through loans or withdrawals.

In contrast, term life insurance has fixed premiums for the duration of the term and does not build any cash value, while whole life insurance involves fixed premiums and guarantees a death benefit as well as cash value growth, but lacks the flexibility of adjusting those amounts. Limited-pay life also requires a specific premium payment schedule with fixed benefits, again lacking the adjustable features of universal life. Thus, the defining characteristics of universal life insurance make it the correct answer.