Todd, age 28, would like to save money for a comfortable retirement. He is considering
Purchasing a cash-value life insurance policy that has the following characteristics:
• The premiums are invested in separate investment accounts selected by the policyholder.
• Interest income and capital gains are not currently taxable to the policyholder.
• The frequency and amount of premium payments can be changed as financial circumstances change.
• A mortality and expense (M&E) charge is periodically deducted from the cash value account. Based on the above characteristics, what type of life insurance is Todd considering purchasing? Explain your answer.