What distinguishes adjustable life policies from traditional life policies?

Adjustable life policies are distinctive in their ability to combine features of both term and permanent insurance. This flexibility allows policyholders to modify their coverage as their insurance needs change over time. For example, an adjustable life policy lets the policyholder decide the amount of coverage they need and the premium they wish to pay. As life circumstances evolve, such as changes in income, dependents, or financial responsibilities, a policyholder can adjust the death benefit or premiums accordingly, making it a versatile option compared to traditional life policies, which usually do not offer such modifications.

In contrast, traditional life policies often provide either whole life coverage with fixed premiums and benefits or term coverage that expires after a certain period without an option for adjustment. The other options do not accurately reflect the characteristics of adjustable life policies, as they do not limit them to only certain premium structures, age groups, or payout conditions.