If an adjustable life policy owner wants to increase the death benefit, which statement is correct?

When an adjustable life policy owner wishes to increase the death benefit, providing evidence of insurability is typically required. This means that the policyholder must demonstrate that they are still insurable at the new level of coverage, which usually involves undergoing a medical examination or answering health-related questions. Insurance companies require this evidence to assess the risk of taking on additional coverage, as the risk profile of the policyholder may have changed since the initial application.

Adjustable life policies are designed to offer flexibility in terms of both the death benefit and the premium payments, so the ability to increase the death benefit aligns with the overall principles of these types of policies. While the policy owner may request an increase, the necessity for evidence of insurability ensures that the insurer can maintain appropriate risk management practices.

Other statements do not accurately reflect the conditions under which a policyholder can modify their coverage. For instance, the death benefit can indeed be adjusted as long as conditions are met, and it is not contingent solely on the development of cash value or requiring a complete policy exchange to achieve the increase.