It’s all over financial news sources. And it’s true. Not often news and truth are in the same corner, but here you go. Due to updated mortality tables and good old competition, the rates, primarily in the healthiest rate classes have been coming steadily down for the past 10 years or so.
Take for example a 51 year old guy in excellent health. 10 years ago he bought a policy from a competitive company at their best rates. He purchased a $500,000, 20 year level term. He has 10 years left on the guaranteed rate of $730 a year, so having heard the rumor he decided to get a life insurance quote on a new $500,000, 10 year term. That would give him an apples to apples comparison with what he had left. The new policy will be $620 a year. So, he can switch to a new policy and save $110 a year for the balance of his 20 years that he wanted to insure.
A further comparison was to drop 10 years back off of his age and see, if he were 41 again today, what his original 20 year term would cost. Try $400 a year. Have term insurance rates really come down? Yes!!!!!!!!!!!!
If you’ve had a term insurance policy for 5-10 years and your health is still good, you’re just crazy not to contact an independent life insurance agent and shop it.
The newer policy may even have built in features at no extra cost like the accelerated death benefit. That allows you, if you are terminally ill, to take a percentage of the proceeds before you die to help pay bills or whatever you need it for. The balance is held for your beneficiaries to receive upon your death. A lot of older policies don’t have these features.
Lower cost! Better benefits! It’s real and it’s worth checking out.
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.