1. Meghana, age 32, is married and has a son, age 1. She recently purchased a life insurance policy that has the following characteristics:

• The frequency of premium payment is flexible.
• The insurance and savings components are separate.
• The interest rate credited to policy is tied to current market conditions, but the policy guarantees a minimum interest rate.
• The waiver of premium is an inherent rider of this plan

Based on these characteristics, what type of life insurance did Meghana purchase? Explain your answer.