2006-12-15 09:38:23 · 10 answers · asked by Linda H 1 in Business & Finance ➔ Insurance
Traditionally, no.
Depends on the type of whole life you have purchased.
Universal and adjustable premium life allows for increases in order to keep the policy from lapsing because they did not earn a sufficient return on your money to cover the increasing cost of insurance (consult the cost of insurance index in your origional policy).
Regular whole life insurance usually does not. If you feel really ripped off, you could consult your state's insurance commissioner, most have a consumer hot line. But in your case, the states themselves have to approve the increase, so you may not have a case, unless the policy was poorly illustrated (insurance agent lied to you), then you may be able to file a complaint if you can prove the agent lied to you. You should know though, the law is on your side as the consumer in the insurance world. Because you have no role in drawing up the contract, that is it is unilateral, courts defer to the party that had not role in the wording of the contract, allowing vague verbage to be interpretted in your favor. IF it was universal life though, you just made a bad decision, and you should consult an insurance agent with a good MUTUAL insurance company that pays dividends on regular whole life insurance. Some of the best out there are Mass Mutual, New York Life, Northwestern Mutual, State Farm (they push Universal though).
I apologize for your problem, it is unfortunate that companies are allowed to create contracts like these in our industry, especially when the companies know they wont work out.
2006-12-15 11:35:16 · answer #1 · answered by corpsengineer 2 · 1⤊ 1⤋
Yes. Whole life premiums can go up after ONE year. If you read the small print, they can raise the rates for you as long as they raise the rates for EVERYONE in that class. They can usually do that with the permission of the state insurance commissioner.
Fixed income? Most of the people in the world live on a fixed income. Salaries and wages are fixed incomes, too, not just social security or retirement benefits. It's really irrelevant. Sorry.
2006-12-15 12:01:20 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
A whole life insurance policy can be raised ONLY if it a modified premium policy. A modified premium policy is generally written to allow the premium to be lower in the beginning so that the policyholder can more easily afford it hoping that their income rises at a later date. If an insurance company is bought, they must accept the contracts that were written by the company that they bought!
Eds
2006-12-17 07:27:21 · answer #3 · answered by Eds 7 · 0⤊ 0⤋
If the policy says that the company can change your rate, which affects the premium, at anytime, then yes.
In most cases, with whole life policies, premium remain fix until you hit age 100. If you live to age 100, the company will release all the cash value to you without any charges or taxes.
2006-12-15 19:52:10 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If the company you bought the policy originally went out of business and a new company picked up the policy they could raise the premium. If the original company still is the insurer then no they can't. Unless, it is not a whole life policy. If it is universal life or a variable universal life policy then yes they can.
2006-12-15 09:57:20 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
sit down lower back and loosen up my pal. the very reality of the remember is that coverage organizations do no longer go bankrupt contained in the traditional sense. they purely get obtained by different insurers. sounds like your dad ought to have had a hybrid coverage that has an funding component of it. The funding isn't doing nicely and isn't any longer masking the fee of preserving the coverage prices. demanding for me to point extra with out seeing the coverage and so on. yet in spite of everything do not be in contact about the solvency of the coverage provider.
2016-11-26 21:39:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, as long as it is a regular whole life. Unless you have an instance like waggy33 described. Whole life is supposed to be fixed rate.
2006-12-16 01:57:48 · answer #7 · answered by ricks 5 · 0⤊ 0⤋
it could have always been a "special" whole life policy with a premium fluctuation at 20 years to better cover M&E expenses.
2006-12-15 11:11:30 · answer #8 · answered by Modus Operandi 6 · 0⤊ 0⤋
Yes it can. Check your policy to make sure your rates don't increase after a certain amount of years.
2006-12-16 10:02:56 · answer #9 · answered by RichMac82 6 · 0⤊ 0⤋
it shouldn't
2006-12-16 23:08:56 · answer #10 · answered by Anonymous · 0⤊ 0⤋