Guide · Premiums · 2 min read
Why did my premium go up?
The reason is almost always in your contract, not in the letter. Here's where to look.
Find out what kind of policy it is
Your policy's first page names the type. Term, whole life and universal life handle premiums very differently.
Can't find the contract? The letter usually shows a policy number. Your insurer can tell you the type over the phone and mail you a copy.
Common reasons, by type
- Term: the level period may have ended, and the policy now renews at a higher yearly rate.
- Universal life: the cost of insurance can rise with age, or the cash value may no longer cover it.
- Whole life: premiums are usually fixed, so an increase is worth asking about.
Smaller changes can come from a rider you added, a switch from yearly to monthly billing, or a discount that ended.
Before you decide anything
If you can, keep paying while you sort it out. A missed payment may start a grace period, and if it runs out the policy may lapse. Ask for the explanation in writing so you can check it against your contract.
What to ask your insurer
- What caused the increase, and which section of my contract allows it?
- Is this a one-time change or will it keep going up?
- Can you send an illustration showing what I may pay in future years?
- What are my options if I can't pay the new amount?
This guide gives general information and is not advice on your own policy. Your policy contract and the insurer make the final call.