How does the cost of insurance typically change in a Variable Life Insurance policy?

In a Variable Life Insurance policy, the cost of insurance typically increases as the insured ages and can also rise if health risk factors change. This is due to the inherent nature of insurance underwriting, where risk assessment is closely tied to age and health conditions.

As individuals grow older, they generally present a higher risk for insurance providers, which is reflected in the premiums charged. The insurance component of a Variable Life policy is influenced by age because older individuals statistically have shorter life expectancies, leading insurers to adjust costs accordingly to maintain adequate reserves to cover potential claims.

Moreover, if an insured person's health deteriorates or if they develop serious health conditions, this can also prompt a reevaluation of the risk they present to the insurer. Consequently, the cost of insurance may increase to reflect this heightened risk level.

This understanding is essential for policyholders, as it underscores the importance of monitoring both their age-related costs and any changes in health when evaluating their life insurance coverage over time.