In an adjustable life policy, which element cannot be changed by the owner?

In an adjustable life policy, the owner has the flexibility to modify several key aspects, including adjusting premium amounts, death benefits, and the overall duration of the policy. However, the type of investment is not typically an element that policyholders can alter.

Adjustable life policies allow policyholders to adapt their coverage to fit their changing financial situations or needs, thus they can choose how much to pay in premiums and decide how much coverage is necessary at different life stages. The duration of the policy can also be modified depending on the policyholder’s preferences and financial strategy.

In contrast, the type of investment refers to the underlying investments associated with the policy, such as the mix of stocks, bonds, or other assets that may be used to accumulate cash value. This component is usually governed by the insurance company’s investment options and is not chosen or changed by the policyholder. Consequently, this makes the type of investment the aspect that cannot be adjusted by the policyowner in an adjustable life policy.