Life Insurance is More Affordable
In the last ten years life insurance premiums have fallen by 33 percent. Americans are living longer and longer, which means life insurance companies have to pay benefits less often. Although buying life insurance is not an easy decision to make, it's critical if you want your loved ones to be financially secure after you die.
One in three Americans has no life insurance, and two out of every five people who are insured don't think they have enough coverage. For those who have been putting off purchasing coverage because of the costs, there is good news. Increased competition and lower mortality rates have joined forces to make life insurance premiums lower than ever.
Bargain Policies
Though they may not be very vocal about it, life insurers have been slashing the premiums on term-life coverage for years. For people in their thirties, a yearly premium of about $500 can guarantee you $1,000,000 of coverage for the next 20 years. Even people in their forties or fifties can get decent rates on coverage provided they're in good health. If you already have coverage, looking around for a new policy in the new low-rate climate can help you save thousands of dollars over the next few decades.
What Insurers Don't Want You to Know
Naturally, insurers aren't going to go out of their way to advertise low premiums to new policyholders or encourage current policyholders to look into new discounts. It's up to you to make sure you're getting the best deal possible on your coverage. Despite the drastic drop in premiums, the sale of term-life policies has increased only 4.5% in the last ten years. Most experts attribute this to the low commissions on such policies, which provide insurance agents little incentive to put the word out about more competitive rates.
Using the form on this page, you can compare policies and rate quotes from multiple companies and learn about new discounts for which you might qualify.
Information on Term Life Insurance
Term life is different from whole life in that it doesn't accrue cash value, and the policy is worthless if you are still alive when the term expires. Despite these shortcomings, term life is very popular among financial planners because it provides a great deal of coverage at such a cheap price. Term life is becoming even more affordable because insurers now use more complex formulas to estimate mortality rates. More sophisticated formulas allow insurers to better estimate their risks, which means lower premiums for you. For example, a 30-year-old man who purchased a $1 million policy in 1997 would pay an average of $1,035 annually in premiums. The same man, now 40 years old, would be able to get a 20-year policy for just $630 today.
