Which type of life insurance policy allows for partial withdrawals of cash value?

The correct choice is Universal Life insurance, as it is specifically designed to provide flexibility in premium payments and death benefits, which includes the feature of partial withdrawals of cash value.

Universal Life policies accumulate cash value over time based on the premiums paid and credited interest. This cash value can be accessed by the policyholder, allowing them to make partial withdrawals without affecting the policy's validity, as long as the remaining cash value exceeds any required minimums. This feature makes Universal Life attractive for those who may want to use their policy's cash value for various financial needs while still maintaining a death benefit for beneficiaries.

In contrast, Whole Life insurance typically has more rigid structure and benefits, with cash value available mainly through loans rather than direct withdrawals. Term Life insurance does not accumulate cash value at all; it is purely a death benefit for a specified term. Variable Life insurance also has a cash value component that can fluctuate with investment performance, but it does not allow for standard partial withdrawals without potentially impacting the policy's value and benefits.