What does the term "adjustable life" refer to in insurance?

The term "adjustable life" in insurance refers to a policy that provides the policyholder with the flexibility to adjust both premiums and death benefits over the life of the policy. This type of policy combines features of whole life insurance and term insurance, allowing individuals to adapt their coverage to meet changing financial circumstances or needs.

For instance, if a policyholder experiences a change in income or wants to increase the death benefit to accommodate for additional dependents, they can adjust the policy accordingly without needing to initiate a new policy. This adaptability makes adjustable life insurance appealing for those who value the ability to modify their insurance protection as life circumstances evolve. The flexibility in premium payments and coverage amounts distinguishes it from fixed premium policies, which maintain consistent contributions and benefits, and from term insurance, which typically does not have adjustable features.