Premium flexibility is a feature of many modern life insurance and annuity products, particularly universal life and indexed universal life, that allows policyowners to vary the timing and amount of premium payments within certain limits. Instead of rigidly scheduled premiums, owners can increase, decrease, or temporarily skip payments as long as sufficient cash value exists to cover monthly charges. This flexibility can be valuable for business owners, commission-based professionals, and others with fluctuating income. However, excessive underfunding can shorten policy duration, erode guarantees, or cause lapse, so flexible premiums must be managed with regular reviews and updated illustrations.

In case design, advisors highlight premium flexibility as a key advantage of universal life products over traditional level-premium whole life and term. They model scenarios showing minimum no-lapse premiums, target-level funding, and higher funding for cash value accumulation. During reviews, advisors may recommend premium increases when performance lags or decreases when cash value is strong and goals have changed. Carriers send notices when premiums are insufficient to keep coverage in force beyond a certain age, prompting funding discussions. Clear communication about premium flexibility helps clients understand that freedom to adjust payments comes with responsibility to monitor policy health over time.