- Flexible premium payment
- Increasing death benefit
- Cash value
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What is Adjustable Life Insurance?
Adjustable life insurance or universal life insurance is a type of life insurance plan. It offers an in-built feature to change your policy credentials such as premium cost, sum assured, and riders during the policy term. Adjustable life insurance provides an in-built cash value component for withdrawing the cash component from the policy before maturity.
In this article, we will briefly discuss about adjustable life insurance difference between adjustable and universal life insurance and how to purchase adjustable life insurance.
What are the Key Features of Adjustable Life Insurance?
Flexible Premiums
It offers to change premium payment in several ways, you can switch from a lumpsum premium payment to a regular premium payment option. Along with this, you can skip some premiums and repay them afterwards. However, you were still covered in the policy.Increasing Death Benefit
As you can increase your policy premium over time, your death benefit amount would also increase. However, the increasing death benefit depends upon the life insured age, and lifestyle.Cash Value
The cash value component helps to gain interest over your surrender value of the policy. The interest depends upon the insurer to insurer and their past quarter performance.Policy Loan
In Adjustable life insurance, you can apply for up to 85% of the policy’s surrender value. The interest on the loan amount would depend upon the insurer.
Adjustable Life Insurance Pros and Cons
Following are the pros and cons of adjustable life insurance:
| Pros | Cons |
| Flexible premium payment | Premium amounts are high |
| Increase or decrease the death benefit | Low Interest on cash value. |
| Lifetime cover | Complex to manage |
| Cash value | Limited insurers |
How to Purchase an Adjustable Life Insurance Plan?
Step 1 - Visit the official website of the insurer.
Step 2 - Click on Adjustable Life Insurance from the main menu.
Step 3 - Compare all the plans as per your needs.
Step 4 - Select a plan, and fill in all the mandatory information.
Step 5 - Make payment, and download the policy document.
Document Required to Purchase Adjustable Life Insurance Plan
ID Proof: (Anyone) Aadhar card, Pan card, Voter ID
Income Proof: (Anyone) Bank statement, Salary slip, Blank document
Address Proof: (Anyone) Aadhar card, Pan card, Voter ID
Conclusion
Adjustable life insurance policies are quite expensive compared to normal life insurance policies. But it can depend on the customer’s profile. For more information on adjustable life insurance, you can contact PolicyX.com. Our certified insurance advisors work 24/7 to resolve every possible query of yours.
FAQs: Adjustable Life Insurance
1. Are adjustable life insurance and universal life insurance are same?
Yes, Universal life insurance is another name for an Adjustable life insurance plan.
2. Did the Adjustable life insurance plan offer tax benefit?
Yes, adjustable life insurance offers tax benefits for upto 1.5 lac under section 80C and for upto 2.5 lac under section 1010D of the Income Tax Act.
3. What is the cash value component in Adjustable life insurance?
The cash value component refers to the interest you have received, once you surrender the policy.
4. Does Adjustable Life Insurance offer a policy loan?
Yes, Adjustable Life insurance offers a policy loan for upto 85% of your surrender value.
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Written By: Varun Saxena
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
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