Adjustable life insurance may also be called flexible premium adjustable life insurance or flexible premium insurance because you can adjust the coverage period, face value and premium payments.1
As the name implies, adjustable life insurance allows the policyholder to adjust the terms of the plan as needed. An adjustable life policy and traditional term and whole life plans have many similarities. The difference is that adjustable life insurance can have more variability.2
Adjustable life policies usually have a cash value component, like a whole life policy. Cash value is a savings-like account that earns interest over time.3 Policyholders may be able to make changes to the cash value and borrow against it in the form of a loan.
With term life insurance, you determine the length of the life insurance policy upfront, otherwise known as the term length. With a whole life insurance plan, the coverage lasts the entire life of the policyholder.
In both term and whole life plans, you determine the face value upfront. The face value is the dollar amount the beneficiary will receive, also known as the death benefit, plus any additional benefits your plan has.4 Then, premiums are paid to keep the plan active. With an adjustable life insurance plan, you can make changes to the term length, premium schedule, and the face amount of the plan.5
While Aflac doesn’t offer adjustable life insurance, we do offer term and whole life insurance with versatile benefits that may be able to meet your coverage goals. In our term life insurance plans, you may be able to extend the length of your plan as needed if you already own one. And with our whole life insurance plans, you may be able to make changes to the cash value.
If flexible premium payments are what you are looking for, we also offer final expense whole life insurance with customizable premium schedules. You can pay premiums monthly, quarterly, or annually depending on your needs.
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An adjustable life insurance plan has three main features that can be adapted as needed without penalty.6
A lot can change in the years you own a life insurance plan. Having a life insurance policy with adjustability allows you to make changes as your life and financial situation evolve.
If you have grandchildren, you may decide you want to scale up the face value of the plan and provide greater financial support for your family. On the other hand, you may buy a home and want to scale back your coverage to save money. The built-in flexibility of adjustable life insurance plans is a major advantage.
On the other hand, you are only allowed to change your adjustable life insurance policy within specific parameters. You must request a change to your plan within a certain time frame and that change must fall within your insurer’s regulations. The dates for requests and changes allowed depend on each company’s guidelines.11
While it can be helpful to make changes to your plan, the main difference between adjustable life insurance plans and traditional term or whole life insurance plans is that you can make changes to the policy later. Even though it can be helpful to have the flexibility to change your plan later, whole or term life insurance plans can also provide the coverage you are looking for.12
Some people may find it easier to commit to a solid life insurance plan upfront and move forward without changes. At Aflac, you have life insurance options to fit your lifestyle and needs. Our life insurance plans are affordable, portable, and you may be able to skip the medical questions. Chatting with an agent can help you explore your options.
Explore your life insurance options.
1-3, 5-6, 8-12 Investopedia - Adjustable Life Insurance Definition. Updated Mar 28, 2021. https://www.investopedia.com/terms/a/adjustable-life-insurance.asp Accessed Apr 11, 2022.
4 Investopedia - How Do I Determine the Face Value of a Life Insurance Policy. Updated Nov 14, 2021. https://www.investopedia.com/ask/answers/013015/how-do-i-determine-face-value-life-insurance-policy.asp#:~:text=The%20face%20value%20is%20the,the%20death%20of%20the%20insured. Accessed Apr 11, 2022.
7 Investopedia - Understanding Life Insurance Premiums. Updated Aug 15, 2021. https://www.investopedia.com/articles/personal-finance/022316/understanding-life-insurance-premiums.asp Accessed Apr 20, 2022.
Aflac does not offer adjustable life insurance, but we can point you toward our term and whole life insurance policy. if you have different coverage goals in mind. Chatting with an agent about your options may make this decision easier.
This is a brief product overview only. Coverage may not be available in all states including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders have limitations and exclusions that may affect benefits payable. For costs and complete details of the coverage, please contact your local Aflac agent.
Policy Series B60000: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400.
Aflac insurance coverage is underwritten by Aflac. In New York, coverage underwritten by Aflac New York.
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