How Does A Flexible Premium Adjustable Life Insurance Policy Work? 
A flexible premium adjustable life insurance policy is generally a current assumption universal life contract . It has two sets of rates : current company practice and contractual guarantees . It has three moving parts : the premium , the death benefit and the crediting method -LRB- interest rates , indices or separate sub accounts using equities and bonds . -RRB- The premiums are paid , the policy expenses are deducted and the earnings are added to complete the accumulates cash values . 