Oklahoma Life Producer Practice Exam

Which three features of an adjustable life policy are changeable?

1. Premium type, policy amount, payment period

2. Plan type, covered period, premium period

3. Plan type, payment type, face value

4. Payment term, cash value, premium amount

The correct answer is: Plan type, covered period, premium period

An adjustable life policy is designed to be flexible, allowing policyholders to make changes to certain features of their coverage. The correct answer highlights three core features that can be adjusted: plan type, covered period, and premium period. Plan type refers to the structure of the insurance coverage, which may allow the policyholder to switch between term and whole life features as their needs change. The covered period is particularly important, as it determines how long the policy provides coverage, and can be adjusted according to the policyholder's financial goals or circumstances. The premium period refers to how frequently the policyholder makes premium payments, and this can also be modified to fit the individual’s cash flow management preferences. These features underline the inherent flexibility of adjustable life policies, enabling policyholders to tailor their insurance solution to align with their evolving financial needs. Each of these adjustments can play a significant role in adapting the policy to better fit one’s current life stage or financial situation. The other options do not accurately reflect the changeable features of an adjustable life policy, focusing instead on elements that may not have the same level of flexibility or do not relate directly to standard policy adjustments.