What may be affected if a policyholder of an adjustable whole life policy changes the premium paid?

In an adjustable whole life policy, the premium amount paid by the policyholder directly influences both the face amount of the insurance coverage and the cash value of the policy. When the policyholder adjusts the premium, it can result in changes to the overall death benefit or face value, as the policy terms allow for this flexibility. A higher premium could increase the face amount, while a lower premium might decrease it, reflecting the insurer's risk exposure and the policyholder's investment.

Moreover, the cash value of the policy, which represents a savings component accumulating over time, can also be affected by changes in the premiums. If the premium paid is increased, it may enhance the cash value growth potential, whereas reducing the premium could slow down the accumulation of cash value or even decrease it if the minimum premium requirements are not met.

Thus, adjusting the premium in this type of policy impacts both the death benefit and the cash value, demonstrating the interconnectedness of these features in adjustable whole life insurance.