Which of the following is NOT a characteristic of an Adjustable Life policy?

An Adjustable Life policy is designed to offer flexibility in terms of premium payments and benefits, allowing policyholders to tailor their coverage to meet changing needs. One of the main features of Adjustable Life insurance is that the policyholder can alter premium payments, which can affect the cash value and death benefit of the policy. Additionally, the death benefit can be increased based on the policyholder's wishes and financial needs, subject to underwriting guidelines.

One of the distinctive features of this policy is the ability to convert to a whole life policy, providing further long-term security if the policyholder decides that stable, permanent coverage is necessary.

The option indicating that the face amount can be adjusted using policy dividends is not a characteristic of Adjustable Life insurance. Dividends are typically associated with participating whole life policies and are not used to adjust the face amount in Adjustable Life policies. Thus, this option accurately reflects a characteristic that does not apply to Adjustable Life insurance, making it the correct choice.