What is adjustable life insurance?

Adjustable life insurance is a type of permanent life insurance that offers policyholders the flexibility to adjust their premium payments and death benefits based on their changing needs. This type of insurance allows policyholders to modify their coverage without having to take out a new policy.

Some key features of adjustable life insurance include:

Flexible premium payments: Policyholders have the ability to adjust their premium payments, typically within certain limits set by the insurance company.
Adjustable death benefits: Policyholders can increase or decrease the death benefit amount to better meet their changing financial needs.
Cash value growth: Similar to other types of permanent life insurance, adjustable life insurance accumulates cash value over time that policyholders can access through loans or withdrawals.
Investment options: Some adjustable life insurance policies offer the option to invest the cash value in various investment vehicles, such as stocks or bonds, to potentially increase the cash value growth.
Guaranteed minimum interest rate: Adjustable life insurance policies often come with a guaranteed minimum interest rate on the cash value component, providing some protection against market fluctuations.

Overall, adjustable life insurance can be a good option for individuals who want the flexibility to change their coverage and premium payments as their financial needs evolve. It is important to carefully review the terms and conditions of the policy and consult with a financial advisor to determine if adjustable life insurance is the right choice for your individual situation.