I was asked to investigate a life Insurance Policy recently by a CPA friend of mine. The client, who I assume is the insured, was concerned that the policy premium is scheduled to increase 2 years from now.

It did not take long to determine the problem. It also did not take long to determine there are no solutions either.

The client bought a 20-year term policy when he was 62 years old - he is now 80. At the time of purchase, he was in good health, now at 80 he is not. The initial premium is $31,149 and stays level until age 82. At that point, the premium will increase to $810,189! The client will soon be in a position of going from fully insured to underinsured.