What does adjustable life insurance allow the policy owner to do?

Adjustable life insurance is designed to provide the policy owner with flexibility regarding premiums and death benefits. One of its key features is the ability to adjust the premium payments without needing to submit a new application. This means that if a policyholder's financial situation changes, they can increase or decrease their premium payments in accordance with their current needs and budget.

This flexibility contrasts with more rigid policy types that do not permit such adjustments once established, underscoring the adaptability of adjustable life insurance for policyholders. It caters to the changing circumstances of individuals over time, allowing them to align their life insurance coverage more closely with their financial goals.

The other options describe features that do not align with adjustable life insurance policies. The ability to invest in mutual funds is more indicative of variable life insurance. The notion of reducing the death benefit automatically is not a feature typically associated with adjustable policies, as any changes are made at the policyholder's discretion. Lastly, switching to a whole life policy without penalty is not a standard provision in adjustable life insurance, as transitions between policy types usually involve specific conditions and potential costs.