Adjustment Provision

What Does Adjustment Provision Mean?

An adjustment provision is a clause in an insurance contract that allows for future changes. These changes can include adjusting premium amounts, altering coverage periods, or modifying premium payment schedules. Adjustment provisions are commonly found in life insurance policies but can also be applied to other types of insurance.

Insuranceopedia Explains Adjustment Provision

Adjustment provisions are commonly used in life insurance policies because their coverage often spans many years or even decades. This provision allows the policy to be adjusted to accommodate the various changes in financial and life circumstances that the policyholder is likely to experience over time. It is particularly appealing to those seeking life insurance coverage, as such policies are typically held for an extended period, making flexibility a key benefit.