Final answer:
Universal life insurance is considered interest-sensitive because it offers a cash value component that earns interest over time, giving policyholders the flexibility to adjust the death benefit and premium payments.
Step-by-step explanation:
The Life Insurance policy that would be considered interest-sensitive is Universal life insurance. Universal life insurance is a type of permanent life insurance that offers a cash value component, which earns interest over time. The policyholder has the flexibility to adjust the death benefit and premium payments based on their financial needs.