Which of the following is NOT a valid option for an Adjustable Life Policy?

An Adjustable Life Policy is designed to provide policyholders with flexibility in terms of their premiums, death benefits, and cash values. One of the key features of this type of policy is that it allows policyholders to adjust various aspects of their insurance coverage to fit their changing needs.

The correct response indicates that a nonforfeiture option to increase the death benefit is not a valid option. Nonforfeiture options are typically designed to protect the policyholder’s accrued benefits or cash value in the event that premiums are not paid. These options primarily focus on the preservation of existing values rather than increasing benefits. In the context of Adjustable Life Policies, while you can adjust your premiums and death benefits within certain limits, the nature of nonforfeiture options is to enable continued access to benefits rather than introducing an increase in the death benefit.

The other choices highlight valid adjustments that can be made within an Adjustable Life Policy, such as increasing premium payments to potentially increase the cash value or death benefit, decreasing the death benefit as needs change, or adjusting cash values according to policyholder preferences. Each of these reflects the inherent flexibility and adaptability that characterize Adjustable Life Policies, aligning them with the personal circumstances of the policyholder.