Which policy type allows the policyowner to adjust premium payments and the face amount during the policy term?

• A. Term life
• B. Adjustable life
• C. Whole life
• D. Universal life

Answer: (B)

Adjustable life is designed to let the policyowner change both premium payments and the death benefit (face amount) over the life of the policy. This type blends features of term insurance with permanent coverage, giving you the flexibility to increase or decrease premium and adjust the death benefit as your needs change, within the policy’s limits (often with underwriting required if you raise the face amount). The cash value component also interacts with these adjustments, helping fund costs when premiums are reduced or enabling larger benefits when premiums are increased.

Term life provides no cash value and generally no ability to adjust the face amount once issued, making it unsuitable for this scenario. Whole life has a fixed premium and a fixed face amount, so it doesn’t offer the same adjustable flexibility. Universal life does offer premium and benefit flexibility, but the description that directly matches the ability to adjust both premium and face amount during the term is the adjustable life policy.