Question

What other option is available to the policy owner with ADJUSTABLE LIFE insurance?

a) Increasing the policy's face amount.
b) Decreasing the policy's face amount.
c) Surrendering the policy for cash value.
d) Converting the policy to term insurance.

Answer 1

An adjustable life insurance policy enables the policy owner to adjust the policy's face amount, surrender for cash value, or alter premiums and coverage length without converting to term insurance.

Step-by-step explanation:

The owner of an adjustable life insurance policy has several options beyond those listed in the question. Aside from increasing or decreasing the policy's face amount, and surrendering the policy for its cash value, another option that a policy owner might consider is converting the policy to term insurance. However, the flexibility of an adjustable life insurance policy generally allows for adjustments to the premiums, the payment period, and the length of the coverage period, without the need to convert to a different type of policy.