Jun 05
Return of Premium Term Life Insurance Prices Dramatically Increase
With the recent price increases we’ve seen in the term life insurance marketplace, we’ve seen return of premium term life insurance policies increase nearly 50% in some cases. They are borderline unattractive to consumers, but yet they are still cheaper than universal life. Return of premium policies are the type of policies that offer all of your money back if you don’t die during the length of the term.
Why the dramatic price increases? They are mainly due to reserving laws. When a policy is sold, the life insurance company must have a certain amount of money set aside. This has been done mainly through letters of credit. However, the cost of capital is much higher than it was 5 years ago. These costs are being passed onto the consumer.
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