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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.1
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.1 Policyholders may be able to make changes to the cash value and borrow against it in the form of a loan.
While Aflac doesn’t offer adjustable life insurance, we do offer traditional whole life insurance with cash value and term life insurance with personalized coverage length.
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.2 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.1
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.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
An adjustable life insurance plan has three main features that can be adapted as needed without penalty.1
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.1
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.1
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.
1 Investopedia - Adjustable Life Insurance: Definition, Pros & Cons, vs. Universal. Updated August 20, 2023. Accessed February 20, 2024. https://www.investopedia.com/terms/a/adjustable-life-insurance.asp.
2 Investopedia - What Is the Face Value of a Life Insurance Policy? Updated September 6, 2023. Accessed February 20, 2024. https://www.investopedia.com/ask/answers/013015/how-do-i-determine-face-value-life-insurance-policy.asp.
3 Investopedia - Understanding Life Insurance Premiums. Updated September 8, 2023. Accessed February 20, 2024. https://www.investopedia.com/articles/personal-finance/022316/understanding-life-insurance-premiums.asp.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. 68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Coverage underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908). Final Expense Life: In Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
This is a brief product overview only. Coverage may not be available in all states including but not limited to Delaware, Idaho, New Jersey, New Mexico, New York or Virginia. Benefits/premium rates may vary based on plan selected. Optional riders are available at an additional cost. The policies have limitations and exclusions that may affect benefits payable. Refer to the exact policy for complete details, limitations, and exclusions. For costs and complete details of the coverage, please contact your local Aflac agent. Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999
NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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