Which type of policy allows the policyowner to change the face value, premium, and type of coverage without changing policies?

An adjustable life policy is designed to provide flexibility to the policyowner, allowing them to modify several key features including the face value (the amount paid upon death), the premium amount, and the type of coverage. This flexibility is a significant benefit because it enables the policyowner to adapt the insurance coverage to their changing needs without the necessity of purchasing a new policy.

For example, if a policyholder's financial situation changes or their insurance needs evolve—like needing more coverage for a growing family—they can increase the face value. Similarly, if they find themselves in a situation where they need to reduce their premiums, they can adjust that as well. The adjustable nature of this type of policy is a primary characteristic that distinguishes it from other types of life insurance, such as whole life or term life policies, which have more rigid structures and typically do not allow for such modifications without replacing the policy. Variable life policies, while also flexible, involve investment components tied to market performance, which does not directly relate to changing face value and premiums in the same straightforward manner as adjustable life. Thus, the answer is justified by recognizing the inherent adaptability of the adjustable life policy.