Is It Possible For My Life Insurance Premiums To Ever Increase?
Once you’ve been approved and have selected a life insurance policy, there’s no way that your premiums could ever increase, or is there?
Actually, as it turns out, whether or not your life insurance premiums increase over time depends upon the type of policy you select, term life insurance versus whole life insurance. And although these types of policies might initially appear quite similar, in reality, they are quite different.
Find out what you need to know when it comes to life insurance premiums.
Whole Life Insurance
Unlike a term life insurance policy, a whole life insurance policy never expires, as long as you are paying your premiums that is. In addition, permanent life insurance policies are also capable of building “cash value”, essentially a forced savings account that someone can draw from in the time of an emergency for a small fee. In addition, whole life insurance policies are often thought of as an excellent estate planning tool for those who are concerned the may be subject to significant taxes.
However, does purchasing a whole life insurance policy mean that your premiums will go up? No, investing in permanent policy guarantees that your premiums will remain the same throughout your life. Keep in mind though that premiums must continue to be paid, otherwise, your premiums are not guaranteed to remain the same.
Term Life Insurance
Typically thought of as the most common and straightforward type of policy, term life insurance has many appeals. Not only is term life insurance typically cheaper, it’s also easier to buy and understand. Providing temporary protection, term life insurance plans are an ideal way to find affordable coverage.
So, will term life insurance premiums eventually increase over time? Initially, premiums start out lower than permanent policies and do not increase during the initial term of the policy. However, if you choose to extend your policy past the initial term, there is a chance that your premiums could go up.
Is One Policy Superior to the Other?
If you want to keep your costs down, is one type of policy superior to the other? While both term life and whole life insurance policies have their advantages as well as their drawbacks, many people find term life insurance to be the most affordable option. Offering a lower cost initially while providing coverage for when you need it most, term life insurance policies are considered the most affordable type of life insurance policy. Although your premiums may go up should you choose to extend your policy, term life insurance provides a cost-effective way to get the coverage you need. And best of all, term life insurance policies make it easy to make sure you’re only getting the coverage you actually need.
Ready to begin exploring your options? If so, be sure to use our real-time term life insurance quote generator located at the top of the page. With no personal information required, we make it easy to find the answers you need.
In fact, at TermLifeInsurance.com we guarantee:
- No personal information required
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So, what are you waiting for? Begin your journey towards better coverage today, risk-free.
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