How is cash value growth characterized in Adjustable Life Insurance?

In Adjustable Life Insurance, cash value growth is characterized as being influenced by policyholder adjustments. This type of insurance provides a unique level of flexibility, allowing the policyholder to modify premium payments and adjust the death benefit as their needs change over time. As the policyholder makes these adjustments, the cash value can increase or decrease accordingly.

For instance, if a policyholder decides to contribute more to their premium, this additional payment can be allocated toward building cash value, thereby increasing it. Conversely, if the policyholder decreases their premium payments or opts for a lower death benefit, the cash value may not grow as robustly or might even decline. This responsiveness to the policyholder's decisions highlights the adaptability of Adjustable Life Insurance and illustrates how these choices directly impact cash value growth.