Why life insurance premiums increase?
Life Insurance Premiums Increase every year.
That is what most NZ’s are used to.
Very rarely will a Bank or Insurance company clearly show you the lifetime costs you can expect to pay for a Life Insurance policy.
Why do life insurance premium increase with age
About 80% of Life Insurance policies sold in NZ are just not designed for the long term because life insurance premiums increase every year.
At your annual renewal, the Bank or Insurance company calculates that you are older now (it’s what happens with age) and therefore at a higher risk of something unforeseen happening to you.
Therefore Life Insurance Premiums Increase. A ‘Rate for Age’ premium is like taking out a new policy every year.
What can you do about it?