What is the term for contributions made to an insurance policy that may not be adequate in later years?

The term for contributions made to an insurance policy that may not be adequate in later years is "inadequate premium." This concept highlights situations where the amount paid into the policy does not sufficiently cover the future liabilities or expected claims associated with the policy. Adequate premiums are critical for ensuring that an insurance policy can meet its obligations over time, including death benefits and other payouts.

By referring to premiums as inadequate, it emphasizes the potential risk of policyholders facing underinsurance or finding that their coverage may not be sufficient as time progresses. This can lead to policy lapses or the need for additional payments in the future to maintain coverage, impacting the policyholder’s financial planning.

In contrast, other terms, although they may sound relevant, do not precisely describe the situation where contributions are inadequate for future needs. For instance, supplementary premiums or reserves might refer to additional amounts added to a policy for various reasons, but they don’t specifically indicate a shortfall that jeopardizes the integrity of coverage.