Adjustable life insurance makes the life insurance policy more flexible and consumer friendly. Usually in an adjustable life insurance the premiums and coverage offered can be changed according to the needs and circumstances by the policy holder. This makes these policies similar to variable life insurance. The difference being that variable life insurance does not provide a fixed floating death benefit which the adjustable life insurance provides.

• In such types of insurance, the policyholder is able to adjust the premiums, the coverage period, and other features. For example if John Doe takes out a policy of 100,000 at the age of 27 and the policy is set to mature at 65 then the premiums and coverage can be adjusted according to John’s income or ability to pay. The policy can also be “paid up” if John makes a lump sum payment instead of numerous premiums.
• Adjustable life insurance can be extremely helpful for people who do not have a steady income or face contingencies that can affect their financial health. The premiums of such policies can be adjusted from monthly to quarterly basis so that it becomes easier for the policyholder in times of financial crisis to keep the policy in force. This is also beneficial to the insurer since a policy that is relinquished or surrendered does not offer chances of profit maximization.
• Although adjustable life insurance has some common features with variable life insurance, it is similar to universal life insurance compared to variable life. In fact universal life insurance is almost synonymous with adjustable life insurance. It offers the flexibility of changing the face value, premiums and the death benefit for people with variable income.
• Adjustable life insurance is advantageous for contingent events and events that are certain. Contingent events can be those that may or may not occur, such as marriage, children, and countless others. On the other hand events that are certain are death and taxes. Therefore adjustable life insurance offers the flexibility of increasing or decreasing the premiums and other features of the policy. If John Doe decides to get married then he can increase or decrease the premiums according to the financial circumstances.
• Numerous insurance companies offer adjustable life insurance coverage with further plans. In order to decide if this type of life insurance is suitable for you, it is advisable to speak with your insurance agent for additional facts on how adjustable plans work and what sort of elasticity you can have with the plans.

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