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.

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.

This guide gives general information and does not address your own policy. Your contract and your insurer decide what applies to you.