What is Adjustable Life Insurance?
Adjustable life insurance, or universal life insurance, is a type of life insurance plan. It offers a built-in feature to change policy credentials such as premium cost, sum assured, and riders during the policy term. Adjustable life insurance provides a built-in cash value component for withdrawing the cash component from the policy before maturity.
In this article, we will briefly discuss adjustable life insurance, the difference between adjustable and universal life insurance, and how to purchase adjustable life insurance.
What are the Key Features of Adjustable Life Insurance?
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Flexible Premiums
It offers flexibility in premium payments. You can switch from a lump sum premium payment to a regular premium payment option. Additionally, you can skip some premiums and repay them later, while still remaining covered by the policy.
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Increasing Death Benefit
As you increase your policy premium over time, your death benefit amount would also increase. However, the increasing death benefit depends on the life insured's age and lifestyle.
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Cash Value
The cash value component helps to accrue interest on your policy's surrender value. The interest depends on the insurer and their past quarter performance.
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Policy Loan
With adjustable life insurance, you can apply for up to 85% of the policy's surrender value. The interest on the loan amount depends on 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?
- Visit the official website of the insurer.
- Click on Adjustable Life Insurance from the main menu.
- Compare all the plans as per your needs.
- Select a plan, and fill in all the mandatory information.
- Make payment, and download the policy document.
Documents 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 this 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 your queries.
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