What is the feature of Current Assumption Whole Life insurance?

Current Assumption Whole Life insurance is distinguished by its flexibility regarding premiums, which are influenced by changing interest rates. This type of life insurance allows policyholders to adjust the premiums they pay based on the insurer's current investment performance and prevailing interest rates. When interest rates rise, premiums may decrease, and when they fall, premiums may increase, making this form of insurance adaptable to economic conditions.

The structure of Current Assumption Whole Life insurance includes a cash value component, which accumulates over time, and it typically also provides death benefits. Therefore, the correct answer reflects the product's nature of allowing flexible premiums, as opposed to fixed premiums or only providing death benefits without a cash value.