• Could Your Current Premiums Increase?

  • FINANCIAL MISTAKE: Will your life insurance premiums increase so much that you will have to drastically reduce or eliminate your cover-age (or is something better available now)? 

    Could Your Current Life Policy Premiums Increase?

    If you have term, group, or universal life insurance, the answer is possibly yes (click here to learn about the difference in Permanent vs. Term). If you live long enough, your policy may cost you substantially more (perhaps more every year). If you are unwilling or unable to pay higher premiums, you may be forced to reduce or drop your coverage.

    If you have term life Insurance: With term insurance, coverage is meant to be temporary, so the cost will increase or may expire after a certain time period. With level term insurance, such as a 10 or 20 year term, the cost will increase drastically at the end of the term (so much that you may want to drop it). You may have the option to convert your term to permanent coverage, but it would be at your older age, possibly making the permanent coverage option too expensive.

    If you have universal life (also called flexible premium life): The cause for concern with universal life policies is the possibility of having to pay higher premiums to keep the policy benefits in force. An insured might have to pay more premium for their flexible premium universal life policy because either:

    1. As they get older, their cost of insurance rises substantially (because their chance of dying drastically
        increases). When annual costs of insurance start to exceed annual premiums, unless the insured decides
        to pay more, the insurance company will use cash values to pay premiums. When this happens, cash
        values can be depleted quickly, causing premiums to increase annually.
    2. The cash value built up in the early years of the policy does not earn enough interest. Poorly performing
        cash values can attribute to helping a policy eventually lapse (unless you want to pay a much higher premium).

    To avoid surprises, we prefer universal life policies with a NO LAPSE GUARANTEE where the premiums are guaranteed level to age 100 or 120.

    Your Future Benefits agent can show you how to get the proper illustration from your insurance company, how to determine the guarantees of your current policy, and possibly provide you with options for better coverage with stronger guarantees.


    Make sure that your life insurance benefits will not run out! 

    Click Here for a No Obligation Life Insurance Quote or Policy Review

    Or call us at 901-754-2040

    *Future Benefits agents do not give advice on variable life policies nor do we offer them as we are not licensed to sell "securities".

    See our Professional Disclaimer.