So, I am reviewing a term life policy to sign, and there’s something on it that I didn’t expect to see.

There are 2 different premiums listed–a non-guaranteed quoted rate, which is fixed and on par with the rest of the market–and a guaranteed maximum rate, which increases over time.

The policy states the insurer has the right to increase the policy up to the maximum after a set number of years of my guaranteed quote.

By the end of the 30 year term, my maximum guaranteed premium is 4 times higher than the non-guaranteed quoted rate.

The agent, who I know well, assures me that the company has never increased a premium on one of these policies, and it’s more of an assurance that if the company is ever financially distressed they can increase policy rates to stabilize.

Are these kinds of arrangements normal? I can barely find anything about “guaranteed maximums” or my premium not being guaranteed (but also not guaranteed to go up, like annually renewable policies do) in term life.