Jack has a flexible premium adjustable life policy with a death benefit that increases as the cash value increases; what type of policy does he have?

Jack has a flexible premium adjustable life policy that features a death benefit that increases as the cash value increases, which aligns with the characteristics of a Universal Life Policy with Death Benefit B. This type of policy allows policyholders to adjust their premiums and death benefit levels, making it flexible to meet changing financial needs.

In this specific scenario, the key factor is that the death benefit increases as the cash value of the policy grows, which is a hallmark of Death Benefit B in Universal Life policies. This option typically provides for a death benefit that is equal to the cash value plus the minimum face amount of the policy, resulting in an increasing death benefit as the policy accumulates cash value.

Understanding this distinction is crucial, as it sets Universal Life policies apart from other types, such as Whole Life and Term Life policies, which do not inherently feature this flexible and increasing death benefit linked to the cash value growth. Whole Life policies generally provide a fixed death benefit, while Term Life policies provide coverage for a specified term with no cash value accumulation.