Do Term Life Insurance Premiums Go Up Every Year?

Shawn Plummer

CEO, The Annuity Expert

Does Term Life Insurance Go Up Every Year?

Term life insurance premiums do not increase annually. They remain the same throughout the duration of the policy term.

Explanation and Examples

  • Fixed Premiums: Term life insurance is known for its fixed premium structure. This means the amount you pay when the policy starts is the same amount you’ll pay each year until the policy ends.
  • Example 1: If you buy a 20-year term life insurance policy at $30 per month, you’ll pay $30 every month for 20 years.
  • Example 2: A 30-year-old buys a 10-year term life insurance policy with a premium of $20 per month. At age 40, they still pay $20 monthly.

Understanding Term Life Insurance

  • Policy Term: Term life insurance is active for a specific period, like 10, 20, 30, or 40 years.
  • Purpose: It’s designed to provide financial security to your beneficiaries if you pass away during the term.
  • Renewal: After the term ends, you can renew the policy, but the premium will likely increase based on your age at renewal.


In conclusion, term life insurance offers the advantage of fixed premiums throughout the policy term, making it a predictable and affordable option for life coverage. It’s important to choose the right term length based on your needs. Remember, the premium stays consistent throughout your policy term, offering peace of mind and financial predictability. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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