1. 63291 POINTS
    Peggy MacePRO
    CEO and Senior Agent, Outlook Life, Inc, Most of the U.S.
    Life insurance premiums do not change when your income changes. In fact, life insurance premiums are not based on your income at all. They are based on the type of life insurance you are buying (term, whole, etc), your age, your gender, what company you are using, and (if you are buying a policy that asks health and other risk questions) the rates are based on your health and other risk factors.

    Most life insurance applications do ask about income, because your income may determine how much coverage you can get. But what you pay for that coverage does not fluctuate according to your income.
    Answered on January 4, 2017
  2. 12689 POINTS
    Ted RatliffPRO
    Owner, SFS Associates,
    If you are referring to Health Insurance, under the Affordable Care Act aka Obamacare, premiums can change based on your subsidy. You are required to report any change of income that could affect your subsidy.

    Auto Insurance and Home Insurance do not change with income, however credit can be a factor in rating. Many companies run an insurance credit score and provide discounts for having a high score. This is different from you normal credit score, but that is factored into the equation along with age, claims experience, and type of job you have. This is usually done when the policy is first taken out, but some companies may do this at renewal or if there is a claim.
    Answered on January 5, 2017
  3. 1866 POINTS
    Paul RothPRO
    Senior Commercial and Annuity Specialist, Freedom Brokers, Marion, Carbondale, Harrisburg IL
    The answer depends on age, and type of insurance. Let's take a look at some thing you may not have thought of.
    Auto and homeowners insurance are increasingly governed by credit scores. The higher income you may make may actually make your home and auto policies less expensive than someone who makes significantly less. Why? Your credit score may be higher, live in a neighborhood that has fewer auto thefts (zip plus 4) and you have more money to maintain your home, and therefore may lower your homeowner's insurance.
    Life insurance is not directly affected by income, but the healthier one is, the less one will pay for life insurance. Better care and better diets, while not directly correlated to income, factor into life insurance premiums.
    Individual health insurance for those under 65 on the exchange is affected by income, and subsidies are available for lower income. Over 65? You may pay a bit more if you have a higher income bracket.
    It's a mixed bag. Some may be higher, some lower. Take care of your body, work smart, and mind your finances. That's the best way to keep healthcare and insurance costs low.
    Answered on January 7, 2017
  4. 447 POINTS
    Thad Bynum
    Owner/ Partner, Bynum Insurance Agency, Inc, Clayton, GA
    You asked this question in the auto question block so I will answer it as related to auto insurance. In and of itself the increase in income does not affect your insurance premiums. What does happen though is an increase in income could cause you to need higher limits of liability coverage to cover your earning capacity and/or net worth and this could raise your premiums a bit to cover the increased coverage. Hope this helps.
    Answered on January 10, 2017
  5. 730 POINTS
    Darald Novak AAI
    Retired Agent and Broker, Self Employed, Albany NY USA
    If you carry Personal Long Term or Short Term Disability Income insurance, it should be reviewed to make sure its replacement income is sufficient to maintain your new increased standard of living. This type of insurance is directly related to your income levels.

    It is possible your auto insurance rates may be affected by an increase in income. This is due to the fact that many insurance carriers in many states use a "credit profile" when determining rating tiers for auto and home insurance. The exact formulas and procedures are "proprietary" and (to the best of my knowledge) agents of carriers as well as insurance brokers are unable to obtain this information. You can influence your "credit profile" in many positive ways. Contact your bank or credit unions customer service, member service, and/or loan departments for a "credit consultation" to find out what you can do to better your credit profile. More income may or may not increase your tangible "at risk from liability" assets - an increase of these assets would require higher limits of personal, auto, umbrella/excess and other types of liability coverage to be protected.
    Answered on January 24, 2017
  6. 1185 POINTS
    Scott W JohnsonPRO
    Manager, Marindependent Insurance Services LLC, California
    I agree the answer to the question depends on what type of insurance you are speaking about. In the world of home insurance there are some pretty odd underwriting and rating factors that go into to coming up with your individual rate. Each state has its own laws about some of these practices.
    Answered on February 7, 2017
  7. 616 POINTS
    Robert J Russell - Finalist for Broker of the Year 2015
    Broker Owner, InsuranceAgentsSelling.com, United States (Most States)
    Your income does not affect your premiums in Auto Insurance (the topic you selected), Life Insurance, Health Insurance, Group Insurance, Disability Insurance, Dental, Vision - I am sure that this is something that is bothering you and is an area that you should not stress over. If you need any help with this - please don't hesitate to call me.
    Answered on February 11, 2017
  8. 37 POINTS
    Michael Jarrell
    Licensed Agent, New York Life, Milwaukee, WI
    This depends on the type of insurance. Life insurance can vary from company to company. New York Life offers a life insurance policy in which someone can change how much premium they want to pay. If one year someone decides they don't want to pay, then they can elect not to and not lose their policy.
    Answered on March 20, 2017
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