Premiums in Increasing Term Life Insurance: What You Should Know & How They Work

1. Fixed Premium with Growing Cover

In this model, you pay the same premium every year, but your coverage increases.

• Advantage: Easy budgeting
• Disadvantage: Higher premium at the beginning

Keep in mind that some insurers may offer variants where premiums also increase over time, though this is less common. That’s why it’s important to go through the policy details carefully, so you know exactly how your premiums are structured and what to expect down the line.

2. Customised Increase

Some policies allow you to choose how much the sum assured grows, e.g., by 5%, 10% etc., annually. Premium increases will vary based on that choice. So if you’re wondering, “How much does term life insurance increase?”, it depends on the chosen increment.