Can Term Life Insurance Premiums Increase?

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    Steve SavantPRO
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    There are different types of term life insurance. Annual renewable term is a step up or increasing premium. Guaranteed level term life insurance offers a stable premium throughout the guaranteed period: 5, 10, 15, 20 and 30 years. After the guaranteed period, the premiums increase. If you convert your term life insurance to permanent life insurance the premiums will also increase.
    Answered on September 13, 2013
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    Peggy MacePRO
    Most of the U.S.
    If you have a Term Life Insurance policy where the premiums are not guaranteed, they could possibly increase. Sometimes level term is called that due to the level face amount, with the possibility that premiums could increase after x number of years. Some term policies are called guaranteed, but the company just means that the premium won't go up unless it goes up for the whole group (which can be several times per year). And all term policies have a big jump in premiums after the guaranteed period ends.
     
    Answered on September 13, 2013
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    Ronald HinchPRO
    Regional Marketing Director, Capital Choice Financial Group,
    There are two types of term life insurance. One is annual renewable and the other is level term. I only recommend level term insurance for 10, 15, 20, 25, or 30 year level term. Level term insurance can be renewed at the end of the term at a higher rate because of mortality while annual renewable will automatically renew an an annual bases. Agent who sell annual renewable life insurance only do so to keep their foot in the door so they can return at sometime in the future to convert the client to some form of more expensive cash value policy.
    Answered on July 14, 2016
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