Which statement best describes adjustable life insurance?

• A. May switch between term and permanent coverage and death benefit may be increased with insurability
• B. Is always term life with no cash value
• C. Never allows changes to premium or death benefit
• D. Requires no underwriting

Answer: (A)

Adjustable life insurance blends term-like flexibility with permanent protection, and it is designed to adapt to changing needs. The policy allows the owner to modify the premium payments and the death benefit, and it often lets the death benefit be increased if the insured remains insurable, with any increase subject to underwriting. Because of this built-in flexibility, you can shift toward more permanent coverage or adjust savings components over time, which is not characteristic of a pure term policy. It also includes a cash value component that grows and can be used to fund future premiums or influence the policy’s protection level. Statements claiming it’s always term with no cash value, that premiums or benefits can’t change, or that underwriting isn’t required for changes don’t reflect how adjustable life is designed to function.