Which type of life insurance policy offers investment choices along with flexible premium payments?

The life insurance policy that offers investment choices along with flexible premium payments is the variable universal life insurance policy. This type of policy is designed to provide policyholders with the ability to customize their coverage and investment strategies.

Variable universal life insurance combines features of both variable life insurance and universal life insurance. The policyholder can choose how to allocate the cash value into various investment options, such as stocks, bonds, or money market accounts, which can potentially increase the cash value and death benefit based on market performance. Additionally, the premiums can be adjusted, allowing for flexibility in how much is paid and when, depending on the policyholder's financial situation.

In contrast, the other options presented do not offer this combination of features. A modified endowment contract has more rigid guidelines on contributions and cash value accumulation. Adjustable life policies allow some flexibility but do not typically provide a range of investment options like variable universal life. Graded premium whole life policies set a specific premium schedule and do not offer the same investment flexibility, focusing instead on a level of premiums that increases over time.

This unique blend of investment opportunities and flexible premium payments distinguishes variable universal life insurance as the correct answer.