Surprise, something is actually getting less expensive. A huge change has taken place in the life insurance industry and it couldn't have come at a better time. Premiums are decreasing substantially. Millions of policies sold in the late 80's and 90's were based on the high interest rates available at that time. Most, if not all of these policies are in trouble because low interest rates are causing policyowners to have to come up with premiums of two, three and four times what they inititally thought. Newer, low premium policies are a welcome alternative, and buyers are finding that they can obtain coverage at lower rates even though they are several years older.

Two major developments have brought this about. First, we are living longer. Modern medicine is lengthening the life expectancies of both men and women. This alone would impact the cost of life insurance, but there is also another development. Effective January 2009, all insurance companies must begin to use a newer mortality table used to calculate rates. 

This rule was imposed by the National Association of Insurance Commissioners, and recognizes the improvements in life expectancy.

Don't expect your life insurance company to contact you and tell you they now have a less expensive product, they are perfectly happy collecting the higher premiums. With high agent turnover, the person who sold the original policy may no longer be in the profession. Life insurance is a very competitive industry, and companies have not hesitated to incorporate the new table into their premiums.  New buyers can now provide family protection at previously unheard of rates.  Maybe more important, a safety net has been created for those who are facing huge premium increases in existing policies.  Before dropping valuable coverage, investigate the opportunity of replacing that expensive interest sensitive policy with a new one featuring guaranteed benefits and premiums for life. 

A qualified professional can provide you with an insurance assessment.  This compares current policies with alternatives. We have seen examples of clients lowering rates on policies issued as long ago as twenty years. For an example of a policy comparison, please contact anadolna@associatesgroupinc.com