The flexibility of this kind of unit-based whole-of-life assurance can occasionally be extended further by adding a range of other benefits and options to the policy. In this case, the policy is collectively known as universal whole-of-life assurance.

Adjustable life insurance is another term for universal life assurance, and is called so because it offers flexibility and freedom to increase or reduce a person’s death benefit and pay premiums at any given time or amount once there are funds in the account. Of course, this is subject to certain limits and conditions, as you would expect. When a payment is made to the universal plan, a portion of it goes into an investment account and any interest gained is then credited into the policyholder’s account, which can increase the cash value.

Typically, most of the additional benefits will be at extra cost, meeting the additional cost by cashing more units.

If the policyholder’s circumstances change, the death benefit can be adjusted (sometimes with the need of a medical) and premiums lowered. Provided there are enough funds available in the account, the person can use the cash value previously mentioned to meet the payment of the premiums.