Guide · Billing · 2 min read
Why did my bill go up?
A higher bill can catch you off guard. There is usually a reason written into your contract, and your insurer can tell you which one applies.
Speak with a licensed agent by phone. The call costs nothing, and you never have to buy.
Common reasons a premium rises
Some term policies are priced to rise every year, or at set points such as the end of a 10 or 20 year period. Some permanent policies, like universal life, take monthly costs out of the cash value. If that value runs low, the insurer may ask for a larger payment to keep the policy going.
A rider you added, a switch in how often you pay, or a past due amount rolled into the next bill can also raise the total.
Read the notice first
Insurers often send a notice or an annual statement that explains the change. Find the date the new amount starts, and see whether it is a one time charge or your new regular payment.
If you pay monthly, multiply it out and compare it with the yearly price. Paying monthly sometimes costs a little more than paying once a year.
Before you stop paying
If the new amount is hard to fit in your budget, talk to your insurer before you miss a payment. Some contracts allow options such as a lower death benefit or a different payment schedule. What is available depends on your contract.
What to ask your insurer
- What caused the change in my premium?
- Is this my new regular amount, or a one time charge?
- Will it go up again, and when?
- What options do I have if I can't pay the new amount?
Want someone to go over it with you?
A call puts you through to a licensed agent. The call is free, and agents earn a commission only if you choose to buy.
Call (XXX) XXX-XXXXThis guide gives general information and does not address your own policy. Your contract and your insurer decide what applies to you.