Which combination best describes a universal life insurance policy?

A universal life insurance policy is designed to provide flexibility in both premiums and benefits, which is captured well by the description of a flexible premium deposit fund paired with monthly renewable term insurance.

In a universal life policy, policyholders are allowed to adjust their premiums within certain limits, which provides the flexibility to fit changing financial circumstances. The cash value component accumulates over time, and policyholders can choose how much premium they want to pay, which may vary each policy year. The term "monthly renewable term insurance" refers to the way the death benefit is structured, typically using a cost of insurance that can vary based on the insured's age and health.

This option highlights both the unique funding structure and the death benefit characteristics typical of universal life policies, contrasting with other types of life insurance products that may have more rigid structures, fixed premiums, or limited investment growth.