Questions: The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? A. The death benefit cannot be increased. B. The death benefit can be increased only when the policy has developed a cash value. C. The death benefit can be increased by providing evidence of insurability. D. The death benefit can be increased only by exchanging the existing policy for a new one.

The answer is C: The death benefit can be increased by providing evidence of insurability.

Explanation for each option:

A. The death benefit cannot be increased.

• This statement is incorrect. Adjustable life policies are designed to allow changes to the death benefit, among other features.

B. The death benefit can be increased only when the policy has developed a cash value.

• This statement is incorrect. While cash value can be a factor in some policy adjustments, increasing the death benefit typically requires evidence of insurability rather than relying solely on cash value.

C. The death benefit can be increased by providing evidence of insurability.

• This statement is correct. In most adjustable life insurance policies, increasing the death benefit requires the policyowner to provide evidence of insurability to ensure that the insured still qualifies for the higher coverage amount.

D. The death benefit can be increased only by exchanging the existing policy for a new one.

• This statement is incorrect. Adjustable life policies are specifically designed to allow changes such as increasing the death benefit without needing to exchange the policy for a new one, provided that evidence of insurability is given.

In summary, the correct statement is that the death benefit can be increased by providing evidence of insurability.