Which statement about Tom’s adjustable life insurance policy is incorrect?

The assertion that Tom will need a new policy for a death benefit over $50,000 is not accurate in the context of an adjustable life insurance policy. An adjustable life insurance policy allows policyholders to modify the death benefit amount based on their needs, subject to the insurer's underwriting guidelines and the policy's provisions. As long as Tom can prove insurability, he can typically increase the death benefit without having to obtain a completely new policy.

In contrast, the other statements reflect important aspects of adjustable life insurance. The ability to increase death benefits depends on Tom's proof of insurability, which is a standard requirement in insurance practices. Premium changes also typically require mutual agreement between the insurer and the policyholder, ensuring that both parties are on the same page regarding adjustments to the policy. Moreover, increasing the death benefit without a corresponding increase in premium can lead to slower cash value accumulation, as the additional coverage may dilute the funds available for growth within the policy.