What is Adjustable Life Insurance?
Adjustable life insurance allows you to vary your coverage as your needs change. With an adjustable policy, you normally choose the face amount you need and the premium you want to pay, and the company calculates a plan that provides coverage for your request. The resulting adjustable plan could be anything from a term policy with a short period to a limited-payment whole life policy. You can also choose the type of plan and face value you want, leaving it to the company to calculate the premium rate needed. Note that the term “adjustable life insurance” is sometimes used differently. It is sometimes used as a synonym for variable life, in which the face amount and cash value of a policy rely on the investment performance of a special fund. Reserves are placed in investment accounts that are separate from the company’s general account. Most policies guarantee a minimum face amount, but a cash value minimum is rarely guaranteed.
Adjustable life insurance is an insurance option that makes it simple for policy holders to change the amount and scope of coverage offered by the policy, while also modifying the monthly premium. Generally, life insurance of this type allows adjustments in premiums, the period of protection, and the face amount associated with the policy. In some instances, an adjustable life insurance policy may also allow the policyholder to change the payment terms of the premium, such as moving from a monthly payment to a quarterly payment. It is important to note that most adjustable life insurance policies make it possible to decrease or increase the benefits associated with the policies. This can be very helpful for someone who is unemployed for an extended period of time and has to watch all expenses. Rather than having to abandon the coverage, the policyholder opts for a lower schedule of benefits and obtains a lower premium that is more manageable. At a later date when financial circumstance
– What is variable life insurance? – What is variable universal life insurance? On the “term vs. whole life” issue, this SmartMoney page keeps it simple. http://www.smartmoney.com/insurance/life/index.cfm?story=lifeterm “FOR MOST PEOPLE, the right type of life insurance can be summed up in a single word: term.” Note the qualifying “FOR MOST PEOPLE” above, and you’ll want to read the whole SmartMoney article so as to get a full feel on why they make that recommendation. Even though you can shop around for rates, etc. on the internet, you will get the same rates from a licensed insurance agent, and they should be able to guide you to the right policy. Talk to friends and associates and see who they use. Get an “multiagency” broker as well, so they can compare different policies, but don’t be afraid to do some of the legwork yourself so you go in as educated as possible. Make a checklist of things you want from the insurance (coverage on your frequent travel, especially in other countries
