Term Life Insurance Costs Are Rising
The Wall Street Journal recently reported that insurers are raising premiums on term life policies. Premium increases averaging 5% to 15% started in January 2009 and are sweeping through the industry.
Among the insurers that have announced rate increases are ING's ReliaStar, Prudential Financial and Lincoln National to name a few.
What This Means to You
First, you should act now. If you've been on the fence about buying or changing your life insurance coverage our advice is to act now. Since premiums are going up, you should lock in the best rate you can get now. Postponing your decision could cost you tens of thousands of dollars over the course of your life insurance policy. Even though rates are going up somewhat, term life insurance is still the most inexpensive type of life insurance.
Second, plan on keeping your policy for a long time. Until recently, insurance rates were falling, making it worthwhile for consumers to shop for updated policies every few years. That trend has ended, so choose a policy with a longer term in mind.
Third, get expert advice when you apply for a policy, especially if you have pre-existing health conditions. For a long time, insurance companies could borrow capital relatively inexpensively, and so were able to relax underwriting requirements—a term describing the qualifications a customer must meet in order to receive a policy at a certain rate. Now that capital is harder to get, their requirements are stricter.
Spectrum Direct's professional and courteous agents can help you navigate the application process and get the coverage for the time period you need, because we understand the details of applications and approvals for all personal situations.
How the Purchase Process Has Changed
The rates you pay aren't the only aspect of term life insurance that's changing. The purchase process is not as simple as it was 10 or 15 years ago. Insurance companies want to know much more about your lifestyle and health history and possibly even your driving and credit records.
Every insurance company has slight differences in how they evaluate and approve your policy. That's why it's important to work with Spectrum. We know the insurance companies and work closely with them to get you the best value, as quickly as possible.
We are experts at helping you through the process, saving you time and money as well as worry. Give us a call today and learn why Spectrum should be your first and only choice for your life insurance needs.
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