What is typically the result of paying premiums that exceed the cost of an adjustable life policy?

When premiums paid on an adjustable life policy exceed the cost of the coverage, the typical result is an increase in the cash value of the policy. Adjustable life insurance policies are designed to provide flexibility in terms of premium payments and coverage amounts. When the premiums surpass the cost of insurance, the excess funds accumulate as cash value. This cash value can grow over time at a specified interest rate, contributing to the policy’s overall value and potential benefits.

Having increased cash value can be advantageous for policyholders since it can be borrowed against or withdrawn if needed in the future. This feature adds to the policy's adaptability and long-term financial planning capabilities.

Other options like decreasing coverage, policy cancellation, or having no effect on the policy do not align with the mechanics of how these policies work when excess premiums are paid. The fundamental structure of an adjustable life policy inherently allows for the cash value to increase when more money is put in than is needed for the current insurance costs, thereby reinforcing the necessity of understanding premium payments in the context of the benefits they can provide.