Which type of policy allows the insured to adjust the premium, face amount, and term?

Adjustable Life Insurance is designed to provide the policyholder with the flexibility to modify various aspects of their insurance coverage as their needs change over time. This includes the ability to adjust the premium amount, the face amount of the policy, and the length of the term. This adaptability is beneficial for individuals whose financial situations or coverage needs might evolve, allowing them to maintain appropriate life insurance without needing to purchase a whole new policy.

In contrast, Universal Life Insurance offers a different structure, focusing more on the cash value accumulation and providing some flexibility in premium payments, but it doesn’t allow for adjustments to the term length. Variable Life Insurance offers potential investment opportunities with cash value linked to investment performance but does not allow for direct adjustments to the term in the same way that adjustable life does. Graded Premium Whole Life is a specific type of whole life policy with premiums that start lower and increase over time but does not provide the same level of flexibility in adjusting face amounts or terms as seen in adjustable life policies.

Thus, the correct answer reflects the unique characteristics of adjustable life insurance, emphasizing its customizable nature to meet changing insurance needs.