Like to save money for a comfortable retirement

Reference no: EM131047855

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.

Reference no: EM131047855

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