What is Adjustable Life Insurance?

Adjustable life insurance allows you to vary your coverage as your needs change.

With an adjustable policy, you normally choose the face amount you need and the premium you want to pay, and the company calculates a plan that provides coverage for your request. The resulting adjustable plan could be anything from a term policy with a short period to a limited-payment whole life policy. You can also choose the type of plan and face value you want, leaving it to the company to calculate the premium rate needed.

Note that the term "adjustable life insurance" is sometimes used differently. It is sometimes used as a synonym for variable life, in which the face amount and cash value of a policy rely on the investment performance of a special fund. Reserves are placed in investment accounts that are separate from the company's general account. Most policies guarantee a minimum face amount, but a cash value minimum is rarely guaranteed.