Final answer:
A variable universal life insurance policy combines investment choices with term coverage. It not only provides a death benefit but also includes a cash value that can be invested, offering potential for growth.
Step-by-step explanation:
The type of life policy that combines investment choices with a form of term coverage is known as a variable universal life insurance policy. This type of policy is an insurance method of protecting a person from financial loss that comes with a death benefit and a cash value component.
Policyholders can invest a portion of their premiums in available investment options, which can lead to an increase in the policy's cash value. However, just like any investment, this comes with risks. Additionally, there are insurance policies such as health insurance, car insurance, and renters insurance that also provide financial protection in different circumstances.