Final answer:
Adjustable life insurance allows policyowners to adjust premiums and coverage as needed. It features cash-value accumulation, which can be used to skip premium payments. The flexibility to increase or decrease premiums is a main benefit.
Step-by-step explanation:
Among the benefits available to policyowners in adjustable life insurance, the option to increase or decrease policy premiums as needed is a key feature. Adjustable life insurance provides the flexibility to adjust the amount of coverage, premium payments, and the period of protection, depending on the policyholder's changing life circumstances.
Cash-value life insurance policies, such as whole life insurance, provide a death benefit and accumulate a cash value over time. This can serve as a source for loans or withdrawals. Adjustable life insurance maintains this feature but gives policyholders more control over their premium payments and coverage options.
When a policy has sufficient cash value, the policyowner may be able to skip premium payments temporarily, as the insurance company can use the cash value to cover the premium costs. However, it is important to maintain the necessary cash value to prevent the policy from lapsing.