I recently updated, upgraded and increased my life insurance and with the paperwork finally all completed I can finally say…there is no reason to delay and I should have looked at my insurance sooner! For purposes of this post it doesn’t matter what type of life insurance we are talking about, if you are thinking about increasing it DO IT SOONER THAN LATER.
There are two reasons why you should look into your life insurance sooner than later. One has to do with the life insurance companies and the other is you.
Life Insurance is Becoming More Expensive
I can tell you firsthand that the company I work with has repriced almost every product we sell (Read Reprice = More Expensive) and as “Tyler Durden” once said, I work for a major one. Notwithstanding my experience CNN recently highlighted an increase in price with regards to term life insurance,
Following a decade in which prices fell to all-time lows, premiums for new term policies last year rose an average of 3%, says online agency IntelliQuote, which forecasts more increases this year.
The culprit? Sickly yields on bonds, in which insurers invest most of customers’ premiums.
Those same “sickly” bond yields are affecting permanent products as well.
You Aren’t Getting Younger and You Are Probably Not Getting Healthier
Bond prices are hurting the bottom line of insurance companies. It is only natural considering they have to invest the uncredited premiums somewhere. Obviously the return of an insurance company isn’t the only thing that affects your monthly premium. The major piece of it is your health and age.
Every year you will get older (Profound, right?). Every year you are likely to get less healthy (probably not but as absolute as the last statement). Those two pieces will obviously increase the price of your insurance.
So if the insurance companies are starting to increase in price and you are getting older – why the hell are you waiting to get insurance? For me it was trying to figure out how much I could spend. I don’t believe that is the case for most people since most buy cheap term, so stop being lazy!