Could Your Current Premiums Increase?

**Financial Consideration: Will Your Life Insurance Premiums Rise, Affecting Your Coverage?**

**Potential Increases in Your Current Life Insurance Premiums**

If you hold term, group, or universal life insurance, there is a possibility that your premiums may increase over time. If you live long enough, you may find that the cost of your policy rises significantly, potentially leading to the difficult decision of reducing or even terminating your coverage.

For those with term life insurance, it’s important to remember that such policies are intended to provide temporary coverage. With policies like level term insurance, such as a 10- or 20-year term, premiums are fixed for the duration; however, they may see a drastic increase once the term concludes, often prompting reconsideration of the policy. Additionally, there may be an option to convert your term policy to a permanent coverage plan, but given the impact of age, this could lead to substantially higher premiums.

For individuals with universal life insurance (also known as flexible premium life), it’s essential to be aware that higher premiums may become necessary to maintain policy benefits. This can occur due to two primary factors:

1. As you age, the cost of insurance typically increases significantly due to the heightened risk associated with mortality. If annual insurance costs surpass annual premiums, the insurer may utilize cash values to cover premiums. This could rapidly deplete cash values, resulting in increasing premiums in subsequent years.

2. The cash value accrued during the early years of your policy may not yield sufficient interest. Poor performance of cash values can jeopardize the longevity of the policy unless you are prepared to pay noticeably higher premiums.

To mitigate unforeseen challenges, we recommend selecting universal life policies that feature a NO LAPSE GUARANTEE, ensuring premiums remain level up to ages 100 or 120.

Your Future Benefits agent is available to assist you in obtaining a proper illustration from your insurance company. They can help determine the guarantees of your current policy and present options for enhanced coverage with stronger guarantees.

Ensure your life insurance benefits remain secure for the future.

For a complimentary life insurance quote or policy review, please click here.

Alternatively, you may reach us at 901-754-2040.

*Please note that our agents are not authorized to provide advice regarding variable life policies, as we do not have the necessary licenses to sell “securities.”

Refer to our Professional Disclaimer for more information.