Policyholders are permitted to make changes to key features of their policy within limits. They may increase or decrease the premium, increase or decrease the face amount, extend or shorten the guaranteed protection period, and extend or shorten the premium payment period.

Which statement concerning adjustable life insurance is accurate?

Which statement concerning adjustable life insurance is accurate? The face amount and premiums can be changed simultaneously by the policyowner- Adjustable life insurance combines features of both term and whole life coverage.

Can the face amount of a variable life insurance policy be changed?

You may also be able to purchase additional insurance features that may increase the value of your death benefit. In addition, you may be able to increase your face amount at a later date. Such changes might require another medical examination or other evaluation by the insurance company.

Which type of insurance is sometimes called temporary life insurance?

Temporary life insurance, sometimes referred to as a temporary insurance agreement (TIA) is a type of short term life insurance offered only during the life insurance application process. If you die before your final application is approved, the temporary policy pays out to your beneficiaries.

What statement most accurately compares term and permanent life insurance?

The statement most accurately compares term and permanent life insurance (B.) Term life insurance last only for a finite amount of time and is less expensive than permanent life insurance.

What is the face value of whole life insurance?

The face value is the amount of insurance proceeds the policy pays to your beneficiaries upon your death. Therefore, the face value is also referred to as the death benefit. While your beneficiaries receive the face value of your whole life policy when you die, they do not receive the accumulated cash value.

How does an adjustable life insurance policy work?

Adjustable life insurance has a cash value component separate from the death benefit. If you put more money into the policy than is required, the cash value will increase more quickly. You can also use the adjustable life insurance policy’s cash value to pay a part or the entirety of premiums, making your payments flexible over time.

How can whole life insurance policy premiums remain level?

The answer has to do with the cash value feature of whole life insurance policies. This feature allows the insurance company to maintain a guaranteed level premium over the life of the policy. This is different from a term policy, whose premium increases at each renewal.

Can a policyowner increase or decrease the face amount?

In general, the policyowner may: increase or decrease the premium; increase or decrease the face amount; lengthen or shorten the guaranteed protection period; and/or lengthen or shorten the premium payment period. Increases in the face amount usually require evidence of insurability.