Life Insurance Rates Online
IF YOU HAVE term life insurance, you may need to think about purchasing a new policy - and that rates are declining rapidly.
Prices are falling for this type of life insurance in large part because people live longer, according to many observers. In addition, the Internet has brought greater competition and efficiency in the industry over the last decade.
Term life insurance is exactly what its name suggests - good for a fixed amount of time. You have to die before the deadline to collect the death benefits.
The other type, known as the permanent life insurance, which the premiums tend to be several times higher than term. This is due to a policy of paying a death benefit if the insured dies.
In addition, if a policy is canceled after being held for several years, the insured can obtain a portion of the money paid in premiums is returned in the form of a payment value. This does not occur when a term is canceled.
Another important difference is that permanent insurance rates tend to be constant for the life of the policy. Contacting rising insurance rates of policyholders aged. However, the term allow users to block the policy rate in five years by extending long-term policies that typically range from 10 to 30 years.
Therefore, he needs life insurance? In general, life insurance is designed to provide a financial cushion for surviving family members in case of death of primary breadwinner is unexpected.
Although the rate of life insurance have been reduced to 60 per cent in the mid-1990s, rates of permanent life insurance such as universal life and whole life has not changed much at all, according to Brian Stevens, CEO of Lifequotz.com, an insurance broker on line. A 40 years old, male non-smoker in good health, 20 years, could reach a level of life insurance with $ 500,000 death for as little as $ 30 per month.
"(The rate of life insurance) actually fell sharply in the mid 90s. It was like going on roller coasters at Great America. It's good for consumers," said Udell. In addition to people living longer, the insurance industry has become more efficient and competitive as it covers the Internet, which has contributed to lower rates, he added.
Life insurance rates drop by about 4 percent in 2007, with most of the decline occurred after the insurance company, according to Steven Weisbart, spokesman for the Insurance Information Institute.
"Life insurance is declining because the mortality rate for 25 - 44 years - the main age range for purchasing life insurance - - have decreased significantly over the past 10 years, "he said.
In fact, rates have fallen much more rapidly to a clip for the duration of insurance to permanent life insurance during the past decade, according to the institute.
This is because the premiums for permanent insurance are more closely related to an insurance company portfolio investment - while term policies are the most affected by mortality rates, or how long people live, said Weisbart. Normally, insurers invest the premiums for life insurance on the bond market, he said. In recent years, interest rates in the bond market have been on the low side.
"If you have a plan, there is little reason to trade for another permanent plan," said Udell. Signature of a new permanent policy will also require payment of additional fees that have already been paid on the old politics, "he says.
Term insurance is a different story.
"To replace a term insurance policy is very simple. Take what you pay and shop in the market and see if you can get a lower rate," said Udell.
But experts noted that the search for life insurance policy is much more than finding the lowest premium. Consumers should also consider factors such as the reputation of the insurer and its customer service, they say.
"It's a very long-term financial commitment. Of course, they want to do business with a company can feel comfortable with," said Marilyn Zack Zack Insurance Services in San Carlos. "The prices are only the tip of the iceberg."
Zack also noted that the age of a person will affect the premiums for the purchase of a new policy.
"It could be a good idea (policy change), if the age difference is not too dramatic, if it is three, four or five years after it bought the original policy," says it.
Clyde Nachand is a licensed life and health insurance agent with Centurion Insurance, based in Dublin insurance broker.
"The replacement of any policy must be made after comparing the old and the new contract is concluded," he said. Premium cost alone is not sufficient to make a decision regarding the replacement of insurance. "
Whether you choose a term or a permanent policy, Nachand said, there is a general recommendation for a life insurance policy with a death benefit of ten times that of a household's gross annual income.
