3.7.2 Adjustable Life Policies
Adjustable life policies contain a high degree of flexibility by combining term and permanent insurance to allow changes to the policy's face amount, period payments, and term during the policy lifetime. Adjustable life policies are constructed using whole life insurance as the base policy.
This flexibility comes at a cost, however. Most adjustable life policies are more expensive than conventional term policies or whole life policies. With an adjustable life policy, the policyowner can adjust the premium amounts and the premium-paying period, increasing or decreasing, and can adjust the policy's face amount and period of protection. If a higher face amount is requested, however, the insurer would typically ask for proof of insurability.
