What Is The Effect Of Inflation On The Premium Of A Life Insurance Policy?

  1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Inflation has little to do with premium pricing. Since 1990, life premiums have gone decreased, not because of deflation, but because mortality costs have gone down due to decreased death benefit claims and extended life expectancy.Inflation could impact the cost of doing business for carriers, but by and large has not effected the price consumers pay for life insurance.
    Answered on August 4, 2013
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  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    If you have a guaranteed level premium policy, your premium will not change while your policy is in effect. This covers Whole Life and most Term policies. However, some Universal Life policies, and all variable policies, can have fluctuating premiums that are tied in with inflation and how the economy is doing.
    Answered on December 10, 2014
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