If you’ve noticed that your whole life insurance premium has gone up, there are a few reasons why it may have happened. This article will discuss the reasons behind the increase and what you can do if you can no longer afford to pay the higher premiums.
Reasons for Premium Increase
|Age||As you age, your risk of death increases, so insurance companies charge higher premiums to cover this risk.|
|Health Changes||If you’ve been diagnosed with a new medical condition or your health has worsened, your premiums will increase to reflect the higher risk to the insurer.|
|Economic Changes||If there has been an increase in inflation or interest rates, this can lead to higher premiums.|
Note that term life insurance policies have level premiums, which means that your premium will stay the same for the duration of the policy. Whole life insurance policies also have level premiums, but they are much higher than term life insurance policies.
Options if You Can’t Afford the Premiums
If your premiums have increased and you can’t afford to pay them, there are a few options available to you:
- Switch to a cheaper life insurance policy.
- Talk to a life insurance agent about finding a policy with the same coverage for a lower price.
- Convert your term life insurance policy to a whole life policy (although this will usually cost more).
- Drop your life insurance altogether (although this is usually not recommended).
- Sell your life insurance policy for cash (although you will receive less than the death benefit).
If you’re finding it difficult to keep up with your life insurance premiums, talk to your agent and see what options are available to you. You may be able to find a policy that is more affordable and still provides the coverage you need. And remember, if you need help purchasing a life insurance policy, contact us for a free quote.
- Investopedia. My Life Insurance Premiums Increased - Now What? (2023)
- Investopedia. Why Did The Premium On My Term Life Insurance Go Up?
- Legal & General. Average Whole Life Insurance Rates In 2023
- Allstate. The Cost Of Whole Life Insurance, And Why It'S So High
- LifeSearch. Why Are Whole Life Insurance Rates More Expensive