Flexible Premium Life Insurance

Flexible premium life insurance is a permanent life insurance policy that allows you to adjust your monthly premium according to your budget. It's usually much more expensive than term life insurance. Keeping your permanent policy opens many benefits for you, but those benefits depend on the company. Compare multiple companies and shop around to find the best life insurance rates.

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

Full Bio →

Written by

Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

Full Bio →

Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jul 19, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Flexible Premium Life Insurance Facts

  • Flexible premium life insurance is a permanent life insurance policy where policyholders can adjust payments to meet their needs.
  • As a permanent life insurance policy, flexible premium life insurance builds a cash value over time.
  • You can borrow money against your death benefits.
  • If a life insurance company has a variable life insurance program, you may be able to add the flexible premium option to it.

Flexible premium life insurance is also known as adjustable life insurance. It’s one of the few life insurance policies that are in between term and permanent life insurance.

Learn more about flexible premium life insurance by going through our comprehensive guide on various details about flexible premium life insurance and other variations of the policy like flexible premium variable life insurance.

Enter your ZIP code and compare life insurance in your area to see if they carry affordable flexible premium life insurance quotes.

What is a flexible premium policy?

A flexible premium life insurance policy is a permanent life insurance policy with perks that make it feel like a term and whole life insurance policy. However, flexible premium life insurance allows you to adjust your premium based on your income.

You’re also able to adjust the interest rate of how your cash accumulates, which is why it goes by other names like flexible premium adjustable life insurance.

How does a flexible premium life insurance policy work?

As permanent life insurance, a part of flexible premium life insurance goes toward life insurance. The other part of the monthly premium goes to the cash value that accumulates over time. You have the option to pay higher rates per month that gains interest.

Therefore, you’ll maintain your death benefits (the amount of your coverage if you pass away) and the cash value that’s collecting with your life insurance company.

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

How is flexible premium life insurance different from other policies?

Flexible premium life insurance works like whole life insurance, but whole life insurance has a fixed interest rate. Both permanent life insurance policies aren’t allowed to make investments in the stock market.

You can get a flexible premium variable life insurance policy if you want stock market investment options.

What about flexible premium life insurance with indexed interest option? Flexible premium variable life insurance carries investment options. It works by taking part or all of your cash value that’s accumulated and investing it into an equity index like the S&P 500.

According to Money-Zine, financial professionals use an equity index to measure an individual or business on how they are performing. These evaluations are compared to other competitors in the same industry.

Flexible Premium Life Insurance Pros and Cons

Getting flexible premium life insurance from companies like MetLife has pros and cons. Let’s explore the advantages and disadvantages of flexible premium life insurance policies.

Flexible Premium Life Insurance Pros and Cons
Flexible Premium Life Insurance ProsFlexible Premium Life Insurance Cons
You'll have flexibility with premium scheduling.You can't go back permanent life after transferring to term life.
There's an opportunity to change to term life.Early termination of your policy can decrease cash value.
You can control how much you pay.Too many cash value withdrawals of cash value will have to be reported to the IRS.
Death benefit payments are tax-free.Any interest payments you receive will have to be reported during tax time.
Life insurance savings aren't affected by stock market.
Get Your Rates Quote Now

Compare RatesStart Now →

It’s important to remember that every life insurance company conducts policies differently.

Some companies carry higher premiums, while other companies have strict rules on when you can shift policies or decrease payments. Become familiar with your provider’s standards by asking as many questions as possible.

Four Ways to Use Your Flexible Premium Life Insurance While You’re Living

There are a lot of things that get overlooked under life insurance. Many may not realize they can use your life insurance policy while they’re still living.

We put together four ways you can use your flexible premium life insurance policy.

Cash Flow Banking

Also called infinite banking, this concept says you should borrow money against your death benefits for business ventures, buying a home, or any investment.

https://youtu.be/CxpK3Y1e1R4

Borrowing money from life insurance companies have lower interest rates, and you have your entire life to pay off the balance. If you don’t pay off the balance before you pass away, the unpaid balance will be deducted from your coverage amount (death benefits).

Accelerated Death Benefit

An accelerated death benefit allows you to draw money from death benefit value if you’ve been diagnosed with a terminal illness. After you’ve passed away, the remaining death benefit balance will be given to your beneficiary.

Waiver of Premium Rider (WoP)

If you lose your job, become severely ill, or if you’re rendered incapable of work, a waiver of premium rider will allow you to keep your life insurance policy even if you can’t make payments. After you’ve recovered, you can start making payments again.

Cash Value Accumulation

Permanent life insurance policies build cash values. The more you pay per month, the more this cash account grows. Some policies carry interest rates, which makes these accounts grow over time.

However, converting your flexible premium life insurance from permanent to term life insurance will disrupt your chances to use a cash accumulation account.

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Flexible Premium Life Insurance: The Bottom Line

Who benefits the most from flexible premium life insurance? The average person can benefit from flexible premium life insurance. It has a versatile interest rate for cash savings, and it allows policyholders to adjust premiums that help their budget.

The downside to the flexible premium adjustable life insurance policy is the price. Permanent life insurance, like whole life insurance, has higher rates than term life insurance quotes.

Are you ready to buy flexible premium life insurance? You can find cheap, flexible premium life insurance rates in your area by entering your ZIP code in the FREE comparison tool below.

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

QuickQuote is a BBB Accredited Business. BBB