It depends on the product. Standalone or pool-of-funds products are classified as guaranteed renewable. This means the insurance company may increase premiums but only on an entire class of policies, not on an individual policy.

For this to happen, the insurance company must file a business case justifying the increase with each state’s insurance commissioner in which it wants to increase rates. The increase may be approved, modified, or rejected by the insurance commissioner. If approved, every policyholder that purchased the same class of policy within the state would receive the increase.

Hybrid products are classified as non-cancellable, meaning the insurance company cannot change the rates.