We bought a life insurance policy in 1992 that’s a combination of term and whole life. The monthly premium has been the same for 32 years—$80.53. At some point, the policy was transferred or sold to another major company. The premium was always paid directly from our bank account.
Now, after 32 years, the premium suddenly increased to $209 per month. Is this normal? It seems suspicious that this happened exactly at the 32-year mark.
Does anyone know what’s going on? Any help is appreciated!
It sounds like the term portion of your policy may have expired, and the company is now charging the full premium for the whole life coverage. This is common with policies that combine term and whole life. Check your original policy documents to confirm if the term portion ended.
This often happens with term policies that convert to whole life after a set period. When the term expires, the premium for whole life coverage can increase significantly. Look over your original paperwork for details about the term length and what happens after it ends.