An adjustable premium is a type of insurance premium that can fluctuate based on a number of different factors. This type of premium is common with many life insurance policies. The insurance company could choose to alter your premium based on a number of things. For example, if the number of claims of your particular demographic group have increased, the insurance company may need to charge more in premiums in order to make up for the difference. Sometimes, an adjustable premium will go up, and sometimes, it will decrease. If the losses are less than expected, or if investments do well, the insurance company could lower your premiums.

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