Which policy provides coverage by focusing on investment in cash value and using the remainder for term insurance needs?

The correct answer, Universal Life Insurance, is characterized by its flexibility in premium payments and its dual focus on providing a death benefit and accumulating cash value. Universal Life combines a pure insurance component, similar to term insurance, with an investment component that grows cash value over time. This cash value can be invested in various options, allowing policyholders to accumulate savings that can provide a source of funds in the future. Furthermore, policyholders have the option to adjust their premium payments and death benefit, adapting to their changing financial needs.

While Variable Life Insurance also focuses on cash value and investment, it allows policyholders to choose from a variety of investment options, which can lead to higher risk and potentially higher rewards. Life Paid Up at 65 is a whole life insurance policy that is paid in full by the time the insured reaches 65, focusing solely on providing a guaranteed death benefit without the investment component that Universal Life offers. Single Pay policies involve a one-time premium payment for life insurance, which does not encompass the flexibility and cash value accumulation structure present in Universal Life.

Therefore, Universal Life Insurance is the policy that meets the criteria of providing coverage by focusing on investing in cash value while utilizing the remainder for term insurance needs.