What does an insured have the ability to do regarding the face amount of the policy?

The ability of an insured to manage the face amount of a life insurance policy often hinges on the rules and options specified within the policy contract. When the insured seeks to increase the face amount, it typically requires sufficient evidence of insurability, such as medical examinations or financial assessments, to ensure that the risk aligns with the insurer's underwriting guidelines. This requirement exists because increasing the coverage amount can result in a higher risk for the insurer, and they need to evaluate the insured's current health status or other relevant factors to make an informed decision.

In contrast, a decrease in the face amount is generally less restricted; many policies allow this to be done more freely, usually without the need for evidence of insurability or extensive approval processes. However, the question focuses explicitly on the conditions under which the face amount can be increased, thus reinforcing that sufficient evidence of insurability is a common requirement for such adjustments.

Policies may provide flexibility for decreases or outline specific procedures for changes, but the emphasis on needing evidence of insurability for increases makes this the correct choice. It reflects a standard approach in the industry concerning modifications to the coverage amount, particularly when considering higher risks associated with increased potential payouts.