What risk is associated with policies that do not have guaranteed premiums over time?

Policies that do not have guaranteed premiums over time are subject to price fluctuation risk. This risk arises because the premium amounts can change based on various factors, including the insurer's claims experience, investment performance, and changes in underwriting criteria. If an insured individual does not have a fixed premium, they can be subject to increases, making it harder to budget for their insurance costs over the long term.

In contrast, investment risk pertains to the potential for loss in an insurance company's investments, which may not directly impact the policyholder's premium unless it is linked to the performance of those investments. Life expectancy risk is more related to the uncertainty of how long an individual will live, affecting life insurance but not directly related to premium stability. Liquidity risk involves the accessibility of cash or assets, which isn’t primary to the understanding of how premium costs may fluctuate over time. Thus, price fluctuation risk aligns directly with the context of policies without guaranteed premiums.