Which option below is typically associated with an insurance policy whose terms are adjusted to meet changing circumstances?

The option that is typically associated with an insurance policy whose terms are adjusted to meet changing circumstances is Universal Life Insurance. This type of insurance is designed with flexibility in mind, allowing policyholders to adjust the premium payments and the death benefit amount. Such adjustments can be made to accommodate the changing financial needs or situations of the policyholder over time.

Universal Life Insurance combines a savings component with a death benefit, and it allows the policyholder to modify the coverage as necessary. For instance, if an individual experiences a significant life event—such as a change in income or family status—they can increase or decrease their premium payments or the death benefit.

The other options, while they have their unique features, do not offer the same level of flexibility. Convertible Insurance typically refers to term policies that can be converted to permanent insurance without further medical underwriting, but it does not allow for ongoing adjustments in terms of premium or benefits. Adjustable Life Insurance does suggest some flexibility, but it’s more limited in its ability to adapt compared to Universal Life. Variable Life Insurance allows policyholders to invest the cash value in various investment options, but again, it doesn’t provide the same level of direct adjustment capabilities tied to personal circumstances as Universal Life does.