Final answer:
An adjustable life insurance policy allows policy owners to adjust their premium payments, the cash value, and the death benefit based on their financial circumstances. This contributes towards their retirement planning and allows them to make proactive decisions about their life post-retirement.
Step-by-step explanation:
The elements of an adjustable life policy that can be altered by the policy owner include the premium amounts, the cash value, and the death benefit. The flexibility of an adjustable life policy allows the policy holder to adjust their premium payments based on their financial ability. Similarly, if there is a significant increase or decrease in the policy holder's income, they can adjust the cash value of the policy as a form of investment. Lastly, the death benefit can be altered to suit the policy holder's need for financial security for their beneficiaries.
Such considerations form part of many peoples' retirement planning, allowing them to make proactive quality-of-life decisions. This planning may also involve setting up living wills and medical power of attorney, particularly as they reach old age.
It's therefore important to regularly reassess your adjustable life policy at different stages in your life, similarly to how you might reassess your investment risk level throughout your career.
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