PSI Life Exam Practice Test

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Prepare for the PSI Life Exam with comprehensive tests. Utilize flashcards and multiple-choice questions, complete with hints and explanations for each question. Achieve exam success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which policy allows the policyowner to change two policy features?

Universal Life
Adjustable Life
Whole Life
Term Life

The correct answer is: Adjustable Life

The Adjustable Life policy allows the policyowner to modify two key features of their insurance coverage: the premium amount and the death benefit. This flexibility enables the policyowner to adjust their coverage to better suit changing financial needs or circumstances. For instance, if the policyowner finds that they can afford to pay a higher premium, they can increase the death benefit, providing greater financial protection for beneficiaries. Conversely, if they need to reduce their premium payments due to budget constraints, they can lower the death benefit accordingly. This adaptability makes Adjustable Life a convenient choice for individuals who anticipate changes in their financial situation or who want the ability to customize their insurance coverage actively throughout the life of the policy.