How the Adjustment Provisions of Adjustable Life Differ from the Change Provisions Found in Ordinary Whole Life Insurance Policies

Adjustments in adjustable life (AL) policies are made prospectively only, affecting the future but in no way amending the past. The change provisions in traditional policies typically require payment of back premiums and/or other retroactive adjustments that may affect cash values. Such changes typically become increasingly and prohibitively expensive the longer the policy has been in force.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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