Adjustment Provision

An adjustment provision allows changes to a life insurance policy.

Say the policy holder has changing financial situations over time, and might need to change the premium amount, the period of coverage, or the premium payments. This clause in the insurance policy allows for the policy holder to make these changes over time. Adjustable life insurance costs more, since any sort of change means a change in risk…and, well, risk is expensive, especially in insurance, since you are actually paying for risk coverage.