One of the most common questions people ask when considering Variable Universal Life (VUL) insurance is: “Can I change the death benefit amount later on?” It’s a great question—especially if your financial needs are likely to evolve over time.
Maybe you’re single now, but you plan to have a family. Or you just welcomed a new baby and want more coverage. Or perhaps your kids have grown up, and your current death benefit feels excessive. Whatever the case, flexibility matters—and that’s exactly where VUL insurance can shine.
The good news? In many VUL policies, yes—you can change your death benefit amount. But before you assume it’s as simple as clicking a button, let’s take a closer look at how it works, when it’s possible, and what you should watch out for.
Life Happens—So Should Your Policy Change With It
Imagine this: At 30, you purchased a VUL policy with a $150,000 death benefit. It seemed like enough at the time. Fast forward ten years—you’re married with two children, a mortgage, and college planning on your radar. Suddenly, that $150,000 coverage doesn’t feel so reassuring.
This is where the flexibility of VUL insurance becomes more than a sales pitch—it becomes personal. Being able to adjust your death benefit lets you match your policy to your life stage, goals, and family responsibilities.
Likewise, there might come a time when you want to reduce your death benefit. Perhaps your financial obligations have decreased or your investment account inside your VUL has grown substantially. Lowering the coverage could reduce your costs or preserve the policy’s value longer.
Two Types of Death Benefit Options
Before discussing changes, it’s important to understand the two primary types of death benefit options available in VUL insurance:
- Option A (Level Death Benefit): Pays out only the face amount of insurance, regardless of the policy’s cash value.
- Option B (Increasing Death Benefit): Pays out the face amount plus the policy’s accumulated cash value.
Changing between Option A and B is sometimes allowed, depending on the insurer’s rules, and often requires a form of underwriting or approval process. Why does this matter? Because your chosen option impacts how your policy behaves—and how your loved ones are protected.
Can You Increase the Death Benefit?
Yes, increasing your death benefit is typically possible, but it’s not automatic.
Most insurance companies will require you to go through new underwriting. That means providing updated health and financial information—possibly even undergoing a medical exam. Why? Because increasing coverage increases the insurer’s risk.
Here’s what you might need to provide:
- Updated application forms
- Health declarations or medical reports
- Proof of insurability
- Financial justification for the increased coverage
If you’ve developed health issues since the original policy was issued, your increase request might be declined—or come with higher charges.
Real-life tip: If you suspect you’ll need more coverage in the future, it may be smarter to buy a slightly higher death benefit upfront while you’re young and healthy.
Can You Decrease the Death Benefit?
Yes—and it’s usually easier than increasing it.
Most policies allow for a reduction in the face amount after the policy has been in force for a certain period (typically 2–3 years). Unlike increases, reducing the death benefit usually doesn’t require underwriting.
Why would someone want to do this?
- To reduce the cost of insurance charges
- To preserve more of the cash value inside the policy
- Because your dependents have become financially independent
However, there may be limitations: Some policies impose a minimum face amount that must remain, and reducing the coverage could impact your access to riders or benefits tied to the original death benefit.
Policy Rules You Should Know
Every VUL policy is different. Before making any changes to your death benefit, make sure to review:
- Minimum and maximum face amount limits
- Time restrictions or lock-in periods
- Administrative fees or charges for making a change
- Tax implications—especially if you’re modifying a policy with significant cash value
Also, remember that changing the death benefit may reset certain features, like contestability or surrender charges. Always consult your agent or policy document to understand the consequences.
How to Request a Change
If you’ve decided that a change to your death benefit is right for you, here’s how the process usually goes:
- Contact your agent or insurance provider
- Complete a policy change request form
- Provide any required documentation (health, financial, etc.)
- Await approval (especially for increases)
- Review the updated policy details once changes are approved
It’s also wise to review your policy illustration before and after the change to see how the adjustment will impact your cash value growth, premium requirements, and long-term performance.
Disclosure: It Varies Across Providers and Countries
Important: Not all policies offer the same flexibility. The ability to change your death benefit—along with the process and requirements—can differ from one insurance company to another, from one product to another, and from one country to another.
For example, in some regions, regulatory rules may limit how often or how much you can adjust your death benefit. Some insurers may not allow decreases if your policy includes certain riders. Others might charge extra fees for any change. That’s why it’s essential to read the fine print and ask clear questions before making any adjustments.
Final Thoughts: Flexibility Is Power—If You Use It Wisely
One of the standout features of VUL insurance is its ability to evolve with you. Life isn’t static, and neither should your policy be. Being able to change your death benefit—up or down—adds a level of personalization that most traditional insurance products don’t offer.
But with that flexibility comes responsibility. Understand the rules. Consider your life stage. Consult a professional if needed. And make changes for the right reasons—not just because the option is there.
After all, your VUL isn’t just an investment or a policy—it’s a commitment to the people you love. Make sure it grows with your life, not apart from it.
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