Most AL policies permit unscheduled additional premium payments. Such payments will lengthen the term of coverage or shorten the premium paying period depending on whether the current plan of insurance is in a term mode or a whole life mode. For example, a large enough payment might change a plan from term to age fifty to term to age sixty-five, or from a life paid-up at age seventy-five to a life paid-up at age sixty-five. Some companies restrict the availability of this feature in the first few policy years.
Reproduced with permission. Copyright The National Underwriter Co. Division of ALM