Updated: June 23, 2025
Advertising & Editorial Disclosure
Adjustable life insurance, also called flexible life insurance, has three key modifiable factors: premiums, death benefits and cash value.
An adjustable life insurance policy may be ideal for people needing flexibility due to income fluctuations or family changes.
Before making policy adjustments, contact your insurer and ask about the process. Certain changes, like increasing the death benefit, may require additional underwriting.
Adjustable life insurance is a type of permanent life insurance that allows policyholders to alter premium payments, death benefits and the policy's cash value as their financial circumstances evolve. You can scale your death benefit up or down and tailor premium payments to fit financial shifts, keeping your policy relevant across different life stages.
Adjustable life insurance is often another term for universal life insurance, which is known for its flexible premiums and adjustable death benefits. You can use the accrued cash value to pay premiums, helping maintain the policy during financial hardships without out-of-pocket costs.
Like other types of life insurance, adjustable life insurance is a contract between a policyholder and insurer that guarantees a death benefit to designated beneficiaries upon the insured's death. In turn, the policyholder makes premium payments to keep the policy active.
Adjustable life policies stand out through their adaptable features, including flexible premiums and adjustable death benefits. These features accommodate changing personal and financial situations over time.
Below are the features of adjustable life insurance policies:
Adjustable life policies come in various structures that cater to different investment preferences and financial goals. Examples include flexible premium indexed adjustable life insurance, where the cash value is linked to a financial index, or a flexible premium multifunded life option, which allows you to allocate premiums to different investment accounts within the policy.
You can tailor your life insurance to specific financial strategies and changing personal circumstances. The availability and structure of options depend on the specific insurance products offered by individual insurers.
Compare your options to determine the right policy and provider. Consulting a financial advisor or an insurance expert can also help.
Adjusting an adjustable life insurance policy allows you to adapt your coverage as your financial circumstances change.
To make adjustments, you usually need to contact your insurance provider to discuss the changes you wish to make. Whether you're increasing the death benefit due to family growth, reducing premiums due to a changed financial situation or adjusting the cash value component for better investment returns, your insurer can guide you through the process.
Some changes may require additional underwriting, particularly if they involve increasing the death benefit.
Regular reviews of your financial goals and insurance needs help ensure your policy stays aligned with your life's trajectory. Such management helps maintain the effectiveness of your coverage and ensures uninterrupted financial security.
Understanding the advantages and potential drawbacks of adjustable life insurance can help you make informed decisions about life coverage.
Deciding whether an adjustable life policy suits you involves understanding how its features align with your current life situation and financial goals. Adjustable life insurance works well for some people but isn't necessary for others. Consider adjustable life insurance if:
Securing adjustable life insurance involves several steps to personalize your coverage based on your financial goals and needs. Here's how to get a policy that offers flexibility and security.
Consider what you expect to require from your life insurance policy. Think about your financial situation, future goals and any dependents who might benefit. Understanding these needs helps determine the coverage amount and the flexibility you require.
Not all insurers offer adjustable life insurance, and terms can vary. Compare different providers to find one that offers the best terms, rates and options for adjustable policies.
A financial advisor or insurance broker can provide insights into how different policies work and help you understand the nuances of adjustable life insurance. They can guide you in choosing a policy that fits your financial plan.
Once you've chosen a provider and a policy, you'll need to apply. The process typically involves completing an application and possibly undergoing a medical exam to assess your risk profile.
Once your policy is active, review it periodically to ensure it continues to meet your needs, especially if your financial situation changes. You can adjust your premiums, death benefits or cash value components as needed.
Evaluating whether an adjustable life insurance policy fits your life involves assessing your financial stability, future goals and personal preferences for managing insurance. Adjustable life insurance may not be for you if:
If adjustable life insurance doesn't suit your needs, other life insurance options might work better for your situation. Here are some alternatives to consider:
Term life insurance offers coverage for a fixed period, typically ranging from 10 to 30 years, making it a cost-effective option for those seeking temporary protection. It's straightforward without a cash value component, which keeps premiums lower than permanent life insurance options.
But once the term expires, you'll need to seek new coverage, which could be more expensive, especially as you age.
Whole life insurance provides permanent coverage with fixed premiums and a guaranteed death benefit. It includes a cash value component that grows at a guaranteed rate, offering a savings element that can be borrowed against or withdrawn.
This type of insurance suits people who prefer stable premiums and consistent growth in cash value, but it's generally more expensive than term life insurance.
Variable life insurance also offers lifelong coverage but with a cash value linked to various investment options, such as stocks and bonds. This allows for potential growth in the cash value, depending on market performance, potentially increasing the policy's value.
But this also comes with higher risk because poor investment performance can affect the cash value and the death benefit. This type of policy works best if you're knowledgeable about investments and comfortable assuming more risk in their insurance policy.
Adjustable life insurance, also known as flexible life insurance, allows policyholders to modify premiums, death benefits and cash value to suit their changing financial circumstances and life stages. In this guide, we explore the characteristics of an adjustable life policy, how it works and its pros and cons to help determine whether this type of insurance fits your needs.
Adjustable life insurance benefits those expecting life changes, such as family expansion or financial shifts. You can increase or decrease your death benefit based on current needs, matching your coverage to your life's demands without overpaying.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
We answer common questions about adjustable life insurance policies to help you determine whether this policy type fits your needs.
Adjustable life insurance is a type of permanent insurance that allows policyholders to adjust premiums, death benefits and the policy's cash value according to their changing financial needs.
If you have a flexible premium adjustable life policy, you can cash it in to access the cash value accumulated within the policy. However, surrender charges might apply, and accessing funds may reduce the policy's death benefit and potential future growth.
If you own an adjustable life insurance policy, you have the authority to request changes to the policy, including updates to premium payments, face value and other policy features. These changes can help adjust the policy to better suit changing financial situations or goals.
A flexible premium adjustable life insurance policy allows you to adjust the amount of your premium payments within a certain range. This flexibility helps accommodate changes in your financial situation, and the policy also accumulates cash value that can be used in various ways.
There is no difference between adjustable life insurance and universal life insurance; adjustable life insurance is another term for universal life insurance. Both offer flexible premiums, an adjustable death benefit and a cash value component that can be managed over time.
The advantage of a flexible premium life insurance policy is the ability to adjust coverage and payments as your financial circumstances change, providing tailored insurance protection throughout your life.
The concept of "flexible term life insurance" isn't commonly available in typical term life insurance policies. Generally, term life insurance offers coverage for a fixed period with set premiums and doesn't include the option to adjust premiums or the coverage amount during the term.
The term "adjustable whole life insurance" doesn't typically refer to a standard policy type in the insurance industry. Traditional whole life insurance generally offers fixed premiums, a fixed death benefit and a cash value component that grows at a guaranteed rate.
Some insurance providers may market more flexible whole life insurance options that allow customization, but these generally don't have the same features as adjustable life insurance.
Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction ratings, financial stability reports, product offerings and more to determine the best life insurance companies for a variety of needs.
Recency Coverage costs and company information for life insurance providers were updated in 2025.
Methodology MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We chose to review these companies based on their broad national coverage and ability to provide an online quote.
MoneyGeek's Scoring System In our scoring system, companies can earn up to five points in each category. We then use these category scores to calculate an overall MoneyGeek score out of 100.
We applied the following weightings to score insurers:
Each company's score incorporates the following:
Sample Customer Profile MoneyGeek used a standard profile to obtain life insurance quotes:
Premiums are based on the standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect a variety of quotes and determine the best life insurance company for several types of customers. We also collected quotes for term life insurance with varying term lengths and coverage amounts.
We identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was initially collected.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
