The Long Read

Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)

Simple! A rate-up happens when the insurer asks for a higher premium on the term plan that you selected. 

It is like a revised offer from your insurer, because you may have raised the risk for them in insuring you, with either your poor health, financial conditions, hazardous occupation, or risky hobbies


There are many factors that decide whether you will get a term insurance policy with a rate-up. 

See, rate-up occurs when the life insurer figures out if you are a high-risk customer or not:

  • Say you have underlying health conditions such as diabetes, cancer, heart diseases, etc or 

  • You have poor lifestyle habits such as smoking, drinking, doing drugs, etc or

  • You have a lot of debts or

  • Maybe you are in a hazardous profession

These factors can make you more likely to pass away during the policy duration than someone with better health, finances, and other aspects that are better compared to yours.  This means the insurer will have to pay the insurance claim to your nominee.


Here’s the thing about most life insurance companies: if one of them has offered you a rate-up, chances are the others will too. 

Our advice: Don’t be discouraged by the rate-up. 

Even if you lost the bargain with your life insurance company, you and your family will win in the long run thanks to the financial security the term plan will provide your family with, in the event of your unexpected death.