-
If you are looking for a life insurance policy with coverage flexibility, adjustable life insurance is an option. This type of policy provides features not available with other policies.
Definition
Adjustable life insurance is a life policy that can be adjusted to different coverage levels depending on the policyholder's needs. Both term and whole life products may be sold as adjustable policies.
Purpose
An adjustable policy is designed to accommodate changing life circumstances without the need for buying a new policy. When a policyholder buys a home, has a child or gets married, he can change the face value accordingly.
Cost
The cost of an adjustable policy varies according to your coverage levels. If you change the face value of the policy, your premiums will change as well.
Premium Choice
Some companies allow policyholders to choose the premiums they want to pay and provide coverage levels based on those premiums.
Other Term Uses
Adjustable life insurance is sometimes means "variable life," which is a policy in which the face value varies according to a financial index.
Source:
Copyright 2023, Wired Ivy, LLC