Term life insurance goes up in price after the years for which the guaranteed premium have been completed.
E.g. If you took out a 30 year policy at age 30 and it was guaranteed not to go up in price for the full 30 years, it would go up at age 60. If the policy was guaranteed not to go up for 20 of the 30 years, there is a chance that it could go up at age 50.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The mortality rate increases every year. That means for every year you survive, your chances of not surviving the next year are greater. If you purchased one year term insurance the price will increase every year. When you buy a ten or twenty year term policy, the premium charged for those years is level but is roughly the average you would have paid for the one year term policies. The shock is to look at the one year term rate after your guaranteed premium period expires. It can be multiples of your guaranteed premiums, and it increases every year.
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E.g. If you took out a 30 year policy at age 30 and it was guaranteed not to go up in price for the full 30 years, it would go up at age 60. If the policy was guaranteed not to go up for 20 of the 30 years, there is a chance that it could go up at age 50.