Which type of life insurance typically allows policyowners to adjust their premiums and benefits over time?

Adjustable life insurance is designed to offer policyowners significant flexibility in managing their policy by allowing them to adjust both premiums and benefits over time. This type of insurance combines features of both term and whole life insurance, giving the policyholder the ability to increase or decrease their death benefit, and also to modify their premium payments based on their current financial situation or insurance needs.

This variability is particularly advantageous for individuals whose financial situations may change over the years, as it can accommodate varying budgets and coverage requirements. For instance, if someone experiences an increase in income or has additional financial responsibilities, they can choose to raise their coverage amount. Conversely, if their financial situation becomes tighter, they can potentially reduce their premiums or coverage accordingly.

In contrast, other types of life insurance, like term life or whole life, do not offer the same level of flexibility. Term life provides coverage for a specific period with fixed premiums, while whole life offers a savings component but does not allow for changes in premiums or benefits. Universal life does share some adjustable features but primarily focuses on flexible premiums and an interest-earning cash value component rather than adjusting death benefits as prominently as adjustable life insurance does.