Agent Owner, Gilmore Insurance Services, Marysville, Washington State
It will depend on the type of policy selected. Term insurance will eventually always rise in cost as a policyholder ages. Term is temporary coverage that may offer a level period of cost, but kept beyond that period, costs usually rises every year.
With permanent insurance a single cost is created at the begining of the policy that will be charged either for a set period of time or the life of the policy.
The easiest way to think of cost and life insurance is as follows.. "Term insurance is the cheapest to start with, the most expensive to finish with and Whole life is the most expensive to start with, but the cheapest to finish with."
Term, whole Life and Universal Life. There is also a fourth type called variable life but it is really an investment sold by investment brokers rather than most life insurance agents.
Term will always go up. True term goes up each year but most people pay extra to level out the premium for 10,20, or 30-years.
Whole-life never goes up unless you buy a policy that has a laddered premium. If it has that (fairly rare) the amount and timing of the premium is built into the policy.
Universal Life can be bought with guaranteed level premiums but more commonly is sold with no level premium guarantee and has large rate increases at unpredictable times.
Asking whether the cost of your life insurance policy can go up is an excellent question to ask when applying for your policy. Many people assume that Term life is guaranteed not to go up for the entire term, but that is not always the case. Even Whole Life policies that are purchased on a simplified issue basis might have a caveat that they can go up in price at certain times, or for the whole group. Therefore, this is a great question and one that you do need to ask your agent.
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With permanent insurance a single cost is created at the begining of the policy that will be charged either for a set period of time or the life of the policy.
The easiest way to think of cost and life insurance is as follows.. "Term insurance is the cheapest to start with, the most expensive to finish with and Whole life is the most expensive to start with, but the cheapest to finish with."
Term, whole Life and Universal Life. There is also a fourth type called variable life but it is really an investment sold by investment brokers rather than most life insurance agents.
Term will always go up. True term goes up each year but most people pay extra to level out the premium for 10,20, or 30-years.
Whole-life never goes up unless you buy a policy that has a laddered premium. If it has that (fairly rare) the amount and timing of the premium is built into the policy.
Universal Life can be bought with guaranteed level premiums but more commonly is sold with no level premium guarantee and has large rate increases at unpredictable times.