Ah, the good old days. Milk was 50 cents a gallon. Gas was 25 cents a gallon. A new car was under $2000. And life insurance, well, life insurance was so expensive that people had to pay for it by the week. The good old days of life insurance are where we are. In spite of the recent increase in no lapse guarantee life insurance premiums, a long overdue adjustment, life insurance rates have gone down steadily for the last 20 years and life insurance underwriting has advanced along with scientific and medical breakthroughs that have changed the mortality picture of most diseases. Better treatment and earlier diagnosis of health issues has helped curb the impact that everything from elevated cholesterol, heart disease, prostate cancer and melanoma have had on life insurance actuarial assumptions.
But let’s just talk apples for apples price on a $500,000 20 year term life insurance policy. I took out a policy 15 years ago and got the best rate class from then First Colony, since renamed Genworth Life and Annuity. At age 46 the premium on that 20 year term life insurance policy was $770 a year. I was working as a life insurance agent so I’m positive I got the best rate available at that time. That same policy today would be $650 annually. Just to put that 15% decrease in a perspective we all understand, the same month I was approved for that policy gas was 92 cents a gallon and now, after dropping almost 60 cents recently the national average is just over $3. Too bad our good health only seems to affect life insurance rates. In that same time span health insurance for individuals has more than doubled and for families it has tripled. Boy am I glad Obama got a handle on that before it got out of control!
Life insurance underwriting of impaired risks has also made today a decidedly better time to buy life insurance than, say, 15-30 years ago. Life insurance underwriting of treated prostate cancer, watchful waiting of prostate cancer, mood disorders including bipolar disorder and sleep apnea, in the past highly rated or declined, are now approved in many cases at very fair rates. Private aviation is more accepted than ever as pilots are better trained and their aircraft are safer than ever. Life insurance products have evolved from the two choices of 40 years ago, whole life and yearly renewable term, to products without cash value that can be guaranteed at low rates for 30 years or longer, life time guarantees without cash value and numerous cash value options*.
Bottom line. One reason you can’t use for not getting life insurance is that it is just getting too expensive. Why would you take the chance of your family being one that has to set up an account for donations if you die, when you can replace your income with a tax free death benefit for very low prices? Carpe diem! Get off your rear! Take responsibility! Don’t bury your head in the sand! DON’T BE STUPID! If you have any questions or would like get off your rear, call or email me directly. My name is Ed Hinerman. Let’s talk.
*While there are numerous cash value life insurance options, I still believe that term life insurance is the appropriate product for most family life insurance needs.