Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 28, 2021

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The Brief

  • A flexible-premium life insurance policy allows you to adjust your premiums, death benefits, and cash value over time
  • With flexible-premium life insurance policies, the cash value builds interest based on the company’s financial strength
  • Flexible-premium life insurance policies charge higher premiums but can lead to potentially bigger returns on investment

When it comes to buying life insurance, there are two main types: whole life insurance and term life insurance. But did you know there’s a third option as well? This is what is known as flexible-premium life insurance.

Flexible-premium life insurance is an adjustable plan that combines aspects of both term and whole life insurance. Flexible-premium life insurance plans are permanent, but they have more flexibility than most whole life insurance plans.

Keep reading below to learn what a flexible-premium life insurance policy is, who should get one, and where you can find it.

But before you, enter your ZIP code into our free comparison tool above to find affordable flexible-premium life insurance near you.

What is a flexible premium life insurance policy?

So, what is a flexible premium life insurance policy? As we briefly touched on earlier, a flexible-premium life insurance policy is a whole life insurance policy with more flexible terms.

Like whole life insurance, flexible-premium life insurance includes a death benefit and premiums paid on a monthly or annual basis.

Similarly, a portion of your premiums goes to paying for the cost of your insurance, while another portion goes toward your policy’s cash value.

Unlike standard whole life insurance policies, you can adjust your premiums, death benefits, and cash value over the life of the policy. The only caveat is your insurer decides when and how often you can make these changes.

If your current provider doesn’t offer flexible-premium life insurance, don’t worry. Compare flexible-premium life insurance quotes from other companies to find one that does.

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Who should get a flexible premium life insurance policy?

Flexible premium life insurance policies are great for people who want more control over their financial situation. As your financial situation changes over time, so does your life insurance policy.

For example, let’s say you started your policy with a large death benefit because you had young children.

With a flexible premium adjustable death benefit, once your kids are financially independent, you can lower your death benefit and in turn lower your rate.

For another example, let’s say you’ve recently been laid off and are between jobs.

With a flexible-premium life insurance policy, you can lower your monthly premium to the bare minimum while you’re in between jobs so you have more money to spare.

Flexible-premium life insurance is also great for investors.

With a flexible life-premium life insurance policy, your cash value gains interest based on the insurer’s market performance instead of growing at a fixed rate like with most whole life insurance policies.

Where can I buy flexible premium life insurance?

Fortunately, many top life insurance companies offer flexible-premium life insurance policies. Companies such as Northwestern Mutual, State Farm, Prudential, and MetLife are all considered top flexible-premium life insurance companies.

If you’re looking to maximize your investment, it’s important to pay attention to the financial strength of your life insurance company.

The flexible premium life insurance MetLife offers may have a better interest rate for your cash value than Prudential, for example.

The Insurance Information Institute recommends you consider a company’s rating from two or more agencies before judging whether to buy or keep a policy from that company.

Customers should expect to pay a little more per month for a flexible-premium life insurance policy, but those in good health can pay as little as $100 a month for $250,000 in coverage.

Compare flexible-premium life insurance rates from multiple companies to find the best deal.

Now that you know all about flexible-premium life insurance, start shopping today. Enter your ZIP code into our free comparison tool below to buy flexible-premium life insurance from providers in your area.