Adjustable premium life insurance is another name for Universal Life Insurance or UL for short.
UL is not whole life and it's not term. It's a third version.
Adjustable Premium UL has a target premium that is illustrated but you have the option of paying more or less than target and can adjust the premium that you pay anytime you want to.
The adjustable premium has a huge downside. There is no guarantee that your premium will be enough to carry the policy until your death. Many UL policies will terminate from lack of premium and you will lose your insurance and all the money you paid in.
Even if you pay your target premium every month, your policy can (and often does) lapse when you get older.
I don't recommend UL for the average person. It has it's place in estate planning if you are working closely with an advisor every year and you have a real understanding of how UL works. But for the average consumer that wants to set it and forget it... It's a time bomb policy.
I would stick to either term, whole- life, or a GUL which is a UL with a secondary no lapse guarantee. If you get the GUL, do NOT adjust your premium down or you will have turned your policy into a non-guaranteed UL.
Adjustable life insurance: allows you to adjust the amount of premium you pay and the frequency or length of time you pay it; enables you to dump in lump sums of premium or take out policy loans; allows for the adjustment of face amount to suit your needs at any particular time in your life; and is able to be set up to last a short period of time or for your whole life.
Adjustable life insurance, or flexible premium adjustable life insurance, combines features of Term and Whole life. It is most commonly sold as Universal Life Insurance.
The life insurance industry lacks some standardization in titling basic forms of life insurance. The term “adjustable” may simply refer to “flexible” universal life like current assumption universal life, indexed universal life and variable universal, life insurance. These types of flexible universal life have a set current company practice rates that can allow the policy owner to modify the death benefit or premiums.
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UL is not whole life and it's not term. It's a third version.
Adjustable Premium UL has a target premium that is illustrated but you have the option of paying more or less than target and can adjust the premium that you pay anytime you want to.
The adjustable premium has a huge downside. There is no guarantee that your premium will be enough to carry the policy until your death. Many UL policies will terminate from lack of premium and you will lose your insurance and all the money you paid in.
Even if you pay your target premium every month, your policy can (and often does) lapse when you get older.
I don't recommend UL for the average person. It has it's place in estate planning if you are working closely with an advisor every year and you have a real understanding of how UL works. But for the average consumer that wants to set it and forget it... It's a time bomb policy.
I would stick to either term, whole- life, or a GUL which is a UL with a secondary no lapse guarantee. If you get the GUL, do NOT adjust your premium down or you will have turned your policy into a non-guaranteed UL.
Adjustable life insurance, or flexible premium adjustable life insurance, combines features of Term and Whole life. It is most commonly sold as Universal Life Insurance.