Question

The policy-owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

1) The policy-owner can increase the death benefit without any additional requirements
2) The policy-owner needs to provide evidence of insurability to increase the death benefit
3) The policy-owner can only increase the death benefit during specific policy anniversary dates
4) The policy-owner can only increase the death benefit if the policy has a cash value

Answer 1

The policy-owner needs to provide evidence of insurability to increase the death benefit.

Step-by-step explanation:

The correct statement regarding increasing the death benefit of an adjustable life policy is that the policy-owner needs to provide evidence of insurability. This means that the policy-owner will need to demonstrate that they are in good health and insurable according to the insurance company's underwriting guidelines. Providing evidence of insurability helps the insurance company assess the risk associated with increasing the death benefit and determine the appropriate premium to charge.