When Will Your Insurance Premiums Increase?

Adam Jorgensen - Monday, March 06, 2017

Do you know if and when your insurance premiums are set to increase? Life insurance, disability income insurance, and long term care insurance are all an important part of a wealth protection strategy, but it’s important to understand how your future premium situation may affect your plan.

Term life insurance policies are usually issued with a level premium that is guaranteed for the length of the term, but when the term expires they jump significantly in price.

Permanent life insurance policies are intended to be a level premium for the life of the insured. Unfortunately, many policies are started with too low of a premium. Based on the structure of the policy, it’s common that additional premiums will be required in later years. By reviewing your policy with an advisor, you may be able to prevent a premium surprise down the road.

Additionally, disability income insurance and long term care insurance policies may be lacking provisions to lock the required premium for a guaranteed number of years. As the more and more people are using their long term care benefit, insurance companies have been forced to raise rates.

When purchasing an insurance policy ask your advisor about the financial strength of the company and the track record regarding premium increases.  If you already own a policy then review it to make sure everything is on track. Remember that it’s an advisor’s job to apply their expertise to make sure your coverage fits within your financial boundaries now and into the future. To learn more reach out to Veracity Financial Services and obtain reassurance. 

Veracity Advisers is a division of Capital Markets IQ, LLC, a SEC registered investment advisor. 

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Veracity Advisers, to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered personalized investment advice for compensation.