Adjustable Life Insurance
A policy allowing the policyowner to change premium payments and face amount, and to switch between term and permanent protection as needs shift.
Drill all 803 terms as flip-card flashcards in the Exam Engine →
Practice This Concept
A client wants a policy that allows the premium amount and the face amount to be changed up or down within stated limits during the policy's life without issuing a new contract. Which policy is designed for this?
Adjustable life insurance — Adjustable life insurance is a flexible product that lets the policyowner increase or decrease the premium and the death benefit within contractual limits as needs change, and even shift between term-like and whole-life-like structures. It achieves this flexibility by recalculating the plan based on the new premium and coverage rather than issuing a new contract. The policy is structured around the relationship between the premium paid and the cash value generated, so changes are made by recomputing the policy's parameters. Adjustable life is often marketed as a single contract designed to adapt to the owner's changing financial circumstances over time.
National insurance concept
Practice all life insurance questions →