What type of insurance is described as a mix of whole and term insurance?

Prepare for the Virginia Health Insurance Exam. Utilize flashcards and multiple choice questions, each with hints and explanations, to boost your knowledge. Get exam-ready today!

Adjustable life insurance is designed to offer the flexibility of both whole life and term life policies. This type of insurance allows policyholders to adjust the premium and the death benefit throughout the duration of the policy. Essentially, individuals can choose how much they want to pay in premiums and how much coverage they want, effectively combining the characteristics of both whole life and term insurance. Whole life insurance typically provides permanent coverage with fixed premiums, while term life offers temporary coverage for a specific period with lower initial premiums. Adjustable life bridges this gap by allowing for changes in coverage and premiums based on the policyholder's changing needs over time. This adaptability makes adjustable life particularly appealing to individuals who anticipate their insurance needs may evolve.

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