Adjustable Premium

You buy a hamburger for $5. Then, two bites in, the cook comes over and says "you know what, I just got a call that the price of meat went up. You owe me another dollar for those next few bites." That's basically the gist of the adjustable premium, except with insurance policies instead of food.

An insurance policy where the price can fluctuate over time has what's called an "adjustable premium." In these situations, the contract has stipulations allowing the insurance company to change what the policyholder is paying. There are limits (it's not as bad as the hypothetical hamburger we outlined above). The amount that the premium can change is set out in the initial contract. So it's not totally predatory and random. But it's mean.

The key? Stay healthy.