An Adjustable Life Policy is described as ...

• A. It cannot adjust the face amount
• B. It is a universal life policy with investments
• C. It has fixed premiums with no flexibility
• D. It is a hybrid of term life and whole life with adjustable features and a cash value account

Answer: (D)

An Adjustable Life Policy centers on flexibility: it blends term-style coverage with permanent life features and includes a cash value. The key idea is that you can adjust the death benefit (face amount) and the premium payments within certain limits, and those premiums build a cash value that earns interest. Over time, the policy can adapt to changing needs while still providing a cash-value element, which is why it’s described as a hybrid of term life and whole life with an adjustable feature and a cash value account. This flexibility distinguishes it from policies with fixed premiums or benefits.