What is "adjustable life insurance"?

Adjustable life insurance is defined as a type of permanent insurance that provides flexibility in both the premium payments and the death benefit amounts. This means that policyholders have the ability to modify their premium payments and the corresponding death benefit as their financial needs or circumstances change over time. This adaptability makes it an attractive option for individuals who may experience fluctuations in their income or have evolving insurance needs.

With adjustable life insurance, policyholders can increase or decrease their premiums within certain limits and adjust the death benefit to better fit their current financial situation. This unique feature distinguishes adjustable life insurance from more traditional policies, which typically have fixed premiums and death benefits throughout the life of the policy.

The options discussing limited-time insurance or whole life plans with fixed premiums do not capture the flexible nature of adjustable life insurance. Furthermore, adjusting based on income level is not an accurate depiction of how this product functions, as the adjustments in premium and benefits are not directly tied to the insured’s income level but rather to their personal financial strategies and needs.