Apr 15
Term life insurance rates increase
We are in constant communication with the life insurance companies we deal with. Over the past months, there have been many rumblings about the possibility of term life insurance rates increasing. Here are the facts:
- Banner already raised rates earlier this year.
- Reliastar/ING is raising their term rates on April 27.
- Prudential will be raising their term rates on May 1.
All three of the above carriers are major players, right in the thick of the competitive term marketplace.
The conventional wisdom on the street is that term life insurance rates will continue to rise in 2009. Reasons for the rise in rates include:
- Lower bottom line profitability
- Increased reserving requirements
- Increasing reinsurance costs
- Poor investment results
- Increased costs of capital
After years of rate decreases, these increases were inevitable, and there will likely be more. And, popular products like return of premium are disappearing. The message is clear: now is the time to buy.
Also, please keep in mind that the precipitous decline in stock prices, along with the sharp decline in real estate values, has negatively affected the net worth of many Americans. If you are one of these people, keep in mind that if you happen to die today, your family would be a lot worse off than if these declines in net worth had not occurred. As such, life insurance may play an even more important role in your financial plan today than it did just one year ago. Remember – life insurance is the easiest and least expensive way to replace this decline in net worth in the event of a premature death.
(No Ratings Yet)
Loading ...
Print This Post
April 16th, 2009 at 12:40 pm
Accurate calculation is important to cut down the cost of expenses.