Adjustable Premium

Adjustable premium is a type of life insurance which allows the policyholder to change the premium - to increase or decrease the premium and lengthen or shorten the protection period. This will affect the payouts of the policy and can be tied into inflation. This is a guard against funds not being sufficient if the economy shows a marked increase to the cost of living.

This is an area that should be discussed with your agent or broker so that you fully understand your options. It is not a good idea to not consider the "full picture" or you could find yourself with unexpected results such as a duplication of coverage where only one policy will respond. An example of this is disability coverage - if you have more then one policy then the secondary policies will likely pay a limited amount.