What is a defining feature of adjustable life insurance?

An adjustable life insurance policy is characterized by its flexibility, allowing policyholders to modify both the death benefit and the premium payments over time. This feature is particularly beneficial for individuals whose financial circumstances may change or who find their insurance needs evolving as they progress through different life stages. By having the ability to adjust these key components, policyholders can better align their coverage with their current situations, making this type of insurance adaptable to life’s uncertainties and changes.

In contrast, fixed premiums are a characteristic of more traditional life insurance policies, and the inability to alter the death benefit once it is set is indicative of permanent life insurance forms that do not provide such flexibility. Additionally, adjustable life insurance typically accumulates cash value, contrary to options suggesting that it does not have cash value, which is an integral feature of many life insurance products designed to provide additional financial benefits over time.