Adjustable Life Insurance Law and Legal Definition

Adjustable life insurance is a type of life insurance that gives the policyholder power to change the plan of insurance, the face amount, premium and coverage period, decrease the premium and lengthen or shorten the protection period or other features of the policy. In an adjustable life insurance, a beneficiary can vary the coverage as per his/her needs by choosing the face amount and premium. Then the company will make out a plan that will meet the request of a beneficiary. The term adjustable life insurance is sometimes used differently as a synonym for variable life, in which the face amount and cash value depends on the investment performance of a special fund.