Which of the following describes a flexible premium?

A flexible premium refers to a premium payment structure that allows the policyholder to vary the amount and frequency of payments. This means the premium can change each year based on the policyholder's financial situation and preferences, thus offering greater flexibility compared to traditional fixed premium policies.

In this context, a flexible premium enables individuals to adjust their payments to suit their current needs, which is particularly beneficial for those whose financial circumstances may fluctuate over time. This adaptability can help maintain the policy in force, accommodate changes in income, or correspond to the policyholder's financial goals.

On the other hand, a fixed investment strategy refers to a predefined approach that does not offer the level of flexibility associated with flexible premiums. A consistent payment schedule indicates regular payments of the same amount at predetermined intervals, which would not reflect the variability of a flexible premium. Lastly, a premium paid only once describes a single premium policy, which does not allow for changes or adjustments over time as a flexible premium would.