Which policy type offers the flexibility to increase or decrease premium payments or skip a premium if there are sufficient funds in the cash value?

Which policy type offers the flexibility to increase or decrease premium payments or skip a premium if there are sufficient funds in the cash value?

• A. Limited payment
• B. Universal life
• C. Straight life
• D. Adjustable life

Answer: (D)

Adjustable life is designed for changing financial needs. It blends features of term and permanent life, giving the policyowner control over how much is paid and how large the death benefit is. The key is that premium payments aren’t fixed forever—the premium can be increased or decreased within policy guidelines. What makes this option especially useful is that the policy’s cash value can be used to fund the costs of the policy. If there’s enough cash value accumulated, you can even skip a premium and still keep the policy in force, because the cash value will cover the ongoing charges. Of course, if the cash value isn’t enough to cover costs, benefits can still be affected and the owner may need to adjust the premium or death benefit to maintain coverage.

Adjustable life is designed for changing financial needs. It blends features of term and permanent life, giving the policyowner control over how much is paid and how large the death benefit is. The key is that premium payments aren’t fixed forever—the premium can be increased or decreased within policy guidelines. What makes this option especially useful is that the policy’s cash value can be used to fund the costs of the policy. If there’s enough cash value accumulated, you can even skip a premium and still keep the policy in force, because the cash value will cover the ongoing charges. Of course, if the cash value isn’t enough to cover costs, benefits can still be affected and the owner may need to adjust the premium or death benefit to maintain coverage.