Rate-up Premium

Think of rate-up premiums in life insurance like paying extra for a heavy package that you want to courier. Beyond a certain weight limit, you pay an additional fee.

Similarly, a rate-up premium in life insurance involves paying a higher premium to compensate for increased risk factors, such as health conditions. In such a situation, the insurance company may offer the customer a reduced coverage, charge a higher premium or confirm in a few months with a decision on the policy.