What type of insurance policy is considered a contract of adhesion?

A contract of adhesion is a type of agreement where one party has significantly more power than the other in drafting the terms of the contract, leaving the second party with little to no negotiation ability. In the context of insurance, this means that the insurer drafts the policy, and the insured must accept it as is, as they typically cannot modify the standard provisions of the policy.

Adjustable life insurance is indeed an example of a contract of adhesion because it is a complex insurance product with terms that are primarily written by the insurance company. The policyholder has limited options to negotiate terms or conditions and must accept the contract as provided, which is characteristic of adhesion contracts. The adjustable nature does allow some flexibility in features such as premiums and death benefits, but it does not change the fact that the insurance company determines the foundational terms of the policy.

In contrast, whole life insurance, term life insurance, and universal life insurance also have elements where the insurer sets the contract terms. However, these products typically don't involve the same degree of flexibility regarding adjustments to the contract features that one might find in adjustable life insurance. Thus, the unique nature of adjustable life insurance distinguishes it as a prime example of a contract of adhesion.