Can you say fire sale? I just got notice of yet another term insurance price increase, this time from American National, and it appears that the rebound from the lowest prices in history are picking up steam.
I know all of the whole life agents that like to attempt to beat me down are loving the fact that term insurance rates are going up, but before they all schedule a wicked witch is dead tweetup, keep in mind that the increases don’t change the equation. Term is still a great deal even at higher prices and whole still isn’t a good deal even at old prices.
Another interesting release today came from John Hancock. This kind of went along with my post yesterday about Met Life’s external conversion program, and is another reason to consider that option. Essentially what John Hancock is saying is that more and more companies are limiting the number of products they will allow conversion to. There is no magic to why they would do that. Companies limit, as opposed to allowing conversion to all of their permanent products, to push you into a conversion to their most profitable products.
So, term rates going up. Companies limiting your conversion options. Some external guarantee universal life products going up in price, some being dropped.
Bottom line. It’s the new landscape and is just another reason to buy now if you have been considering more insurance or replacement of an old policy or an overpriced policy. Remember, the price increases we’re seeing aren’t killer bad deals, but when you hold a policy over a long period, lower is better.