Which of the following statements is TRUE regarding adjusted life policies?

Adjusted life policies are unique in that they allow policyholders to make adjustments to both their premiums and benefits over time. This flexibility is one of the defining features of such policies. It means that as a person's financial situation changes, their insurance coverage can adapt by either increasing or decreasing the death benefit or altering the premium amounts.

This adaptability makes adjusted life policies particularly appealing to individuals who may experience fluctuations in income or changing life circumstances that necessitate different coverage needs throughout their lives.

In contrast, the other options do not accurately reflect the nature of adjusted life policies. For example, while some policies may lock in low rates, adjusted life policies are designed for flexibility rather than static rates. Similarly, these policies are not limited to new policyholders; they can often be adjusted after the initial purchase. Lastly, adjusted life policies are generally more flexible than whole life policies because they can accommodate changes in premiums and coverage, while whole life policies typically provide fixed premiums and benefits.