Life insurance rates going up …

by Michael on June 1, 2009

in Insurance Newswatch,life insurance

Ever since I entered the insurance business (1978) I have seen term life insurance get less and less expensive. This was due to many factors, but the largest factor is term insurance is for … well a “term”, that is a set number of years and then people did not keep it. With advances in medical science, people lived longer and so the result was that the insurance companies could sell term life insurance for less … and the product was still profitable. It was a win-win, the consumer got the protection they needed and the insurance company also made money. Life was good.

Other things that affected this trend was the earnings insurers made on their investments. They did not need to earn so much on the insurance, because the cash flow earned them money on their investments.

Now … I bet you know where I am going with this, and you’d be right. The investment side has not been so rosy of late, and I am now starting to see some of the major insurers RAISE the price on term life insurance.

Keep in mind that if you purchase a policy – you lock in the rate for the length of the “term”, which could be 10, 15, 20, 25, or 30 years.

If you’ve been thinking about your need for insurance, now is a good time to act on that thought. I still have some carriers who have not raised their premiums as yet. Give me a call or send me an email and I’ll get you a price. I think you’ll be surprised at how affordable it can be.

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