The Role of Inflation in Life Insurance Costs

For life insurance policies with level premiums, your premiums will not change for the policy's life.

For example, if you have a 20-year term life policy, you can expect premiums to remain the same over the 20 years. If you make a change to a life insurance policy, such as adding a rider, then the price may be higher than when you originally bought the policy.

Inflation can be a factor for new policy buyers or policyholders of renewable policies. Insurance companies are businesses that are not immune to rising costs. Because of that, the same policy can become more expensive over time. It’s important to remember, though, that several factors determine life insurance premiums, and inflation is just one of many.