Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

Full Bio →

Written by Jeffrey Manola
Founder & Licensed Agent Jeffrey Manola

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...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Feb 11, 2022

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 provider and cannot guarantee quotes from any single provider.

Our 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 on this page 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.

Facts You Should Know

  • Flexible life insurance is similar to a whole life insurance policy, but grows more cash value over time
  • Age, gender, occupational habits, and more affect your flexible life insurance rates
  • Companies that sell flexible insurance include State Farm, AAA, Prudential, and more

Unpredictable financial obligations happen all the time, and your loved ones can be left responsible if you are not prepared. Fortunately, investing in a life insurance policy protects your family from bearing the financial burden if something happens to you.

If you are currently shopping around for a new life insurance policy or are even doing a little research on some of the different coverage options available to you, you have likely come across flexible life insurance.

Flexible life insurance is a popular type of permanent life insurance sold by most providers, but understanding it can be a challenge. In addition, flexible life insurance is often confusing because of all of the different facets of this type of policy.

This article will discuss what flexible life insurance is, how it works, its pros and cons, and how it differs from other popular life insurance policies, like whole life insurance.

Are you looking to compare flexible life insurance rates? Enter your ZIP code to get free life insurance quotes from companies near you today.

What is flexible life insurance?

Also referred to as adjustable life insurance, universal life insurance, or flexible premium adjustable life insurance, flexible life insurance is precisely what it sounds like. It works like other life insurance policies; however, the difference is that flexible life insurance has an added benefit of adjustability depending on your financial situation.

Essentially, flexible life insurance is a type of permanent life insurance policy with a few added benefits. With a flexible life insurance policy, part of your monthly premiums covers the insurance cost, while the rest builds a cash value over time.

Throughout a flexible or adjustable life policy, you can change three aspects of your coverage: the death benefit, premiums, and cash value. However, your provider will decide when and how often you get to make these changes.

One of the perks of a flexible life insurance policy is the adjustable cash value aspect. If you put more money into your policy than required, the cash value will increase quickly. You can also use your flexible life insurance policy’s cash value to pay part or the whole of your rates, making your payments flexible over time.

It is also essential to know that the cash value grows based on the interest rate of your provider’s financial investments with a flexible policy. This means that although there is a minimum annual interest rate, your cash value can grow at a higher interest rate if your provider’s market performance is positive.

Within your flexible life policy, you can use your cash value in a few ways. For example, you may choose to use it as premium payments, a surrender value, or a loan payment.

You may also choose to adjust your death benefit over time. For example, a significant decrease in your death benefit may result in lower monthly rates or reduce them to nothing if your cash value has grown enough to pay for the policy. However, if the increase is significant enough, you may face higher rates and an additional medical exam.

If you are unsure whether a flexible life insurance policy is right for you, talk through your options with an insurance agent. Even one conversation can help narrow down your options to only the best companies and policies for you.

Your one-stop online guide for life insurance quotes. Get free quotes now!

secured lock Secured with SHA-256 Encryption

How is flexible life insurance different from other kinds of life insurance?

The nature of a flexible life insurance policy is that it is customizable to fit your needs and can change at any time as your financial situation changes. This flexibility is what sets a flexible or adjustable life insurance policy apart from other popular life insurance policies, such as whole and variable life insurance.

Because they are similar in adjustability, it can be hard to differentiate flexible life insurance from variable life insurance or variable universal life insurance policy. However, their main difference is how cash value grows through each. Simply put, there is typically no minimum interest rate on cash value with a variable life policy. As a result, it is a lot riskier than a flexible policy which has a minimum rate from which customers can expand if necessary.

A whole life insurance policy, on the other hand, offers significantly less adjustability than a flexible policy. Each policy shares similar aspects, such as cash value, but a flexible policy changes interest rates. However, a whole life insurance policy is cheaper and offers more simplicity and stability than a flexible policy.

Naturally, a flexible policy is very different from a term life insurance policy. With so many additional facets to a flexible policy, it will be a lot more expensive than a term policy. Term policies cover you for a set amount of time and only include life insurance coverage without any additional aspects.

Because there are so many different options to choose from, be sure to research multiple companies and policies before choosing one. It is also incredibly beneficial to talk through these options with your insurance agent to know you are getting the best life insurance coverage for your needs.

What are the best flexible life insurance companies?

You will find that most life insurance companies sell flexible life insurance in some form, as it is a popular life insurance option for customers. Some of the top life insurance companies that offer flexible life insurance include:

  • Northwestern Mutual
  • State Farm
  • Mutual of Omaha
  • Prudential
  • AAA Life Insurance Company

Again, be sure to research your company of interest before deciding on a policy. You may find that the coverage is not exactly what you need or that there is a better company out there for you.

As a starting point, check out our State Farm Company review for more specific information about the company, including policies, customer reviews, and more.

What are flexible life insurance rates?

Unfortunately, we could not find flexible life insurance quotes from the top companies online. However, the following table includes average general life insurance rates and should give you a good understanding of what you will pay for a flexible life insurance policy.

Average Life Insurance Rates for Non-Smoking Men and Women
Demographic (Non-Smoking)Average Life Insurance Rates
Single 25-Year-Old Female$164.50
Single 25-Year-Old Male$183.61
Married 35-Year-Old Female$170.47
Married 35-Year-Old Male$190.40
Married 45-Year-Old Female$247.50
Married 45-Year-Old Male$274.59
Married 55-Year-Old Female$417.01
Married 55-Year-Old Male$543.23
Single 65-Year-Old Female$898.76
Single 65-Year-Old Male$1,308.00
Get Your Rates Quote Now
Compare RatesStart Now →

As you know, with any insurance policy and company, a few things affect your life insurance rates. Some of the factors that insurance companies will account for when giving you a flexible life insurance quote include:

  • Gender
  • Your age
  • Overall health
  • Occupational risks
  • Dangerous hobbies
  • Smoking or drinking habits

Universally, the quickest and most efficient way to find the cheapest flexible life insurance rates is to compare quotes from multiple life insurance companies. Comparing a few different quotes gives you a better idea of what to expect to pay for life insurance and helps you get the most out of your policy.

Your one-stop online guide for life insurance quotes. Get free quotes now!

secured lock Secured with SHA-256 Encryption

Flexible Life Insurance: The Bottom Line

Flexible life insurance is an excellent option for those that expect to have changing coverage needs in the future. Acting as a permanent policy, a flexible or adjustable policy allows you to accommodate policy components depending on your specific financial situation or future goals.

However, the biggest downside to a flexible policy is its cost. You will pay more for a flexible life insurance policy than you will for a whole or term life insurance policy. The added expense comes from the convenience of adjusting parts of the policy to fit your financial standing better.

Unlike flexible life insurance, variable life insurance provides similar aspects but at a higher risk of collecting less interest on your cash value over time. Variable life insurance also costs a little bit more than flexible life insurance.

Many reputable life insurance providers offer flexible life insurance, so comparing at least three will help you to know which company has the best flexible life insurance policy for your needs. Comparing multiple companies will also help ensure that you get the cheapest life insurance rates. After researching companies, talk with your life insurance agent if you are still unsure.

Ready to start comparing flexible life insurance rates? Enter your ZIP code into our free tool below for instant life insurance quotes from companies near you today.