Can life insurers raise the premium after the policy is purchased?
The amount you pay can go up because of taxes, notably service tax on insurance companies
Can life insurers raise the premium after the policy is purchased?
Jay Basu, Pune
An insurance policy is a contract or agreement that you enter into with the insurer. You agree to a fixed price (premium) in order to remain insured for the term of the policy. So, this price or premium can’t be increased after you buy the policy. What can happen is that the amount you pay can go up because of taxes, notably service tax on insurance companies and any such charges that the insurance company may need to levy in the future. In recent years increasing service tax rates have impacted the premiums one pays on insurance policies.