According to a number of independent reports, the typical cost of term life insurance has been declining over the past 10 years or so. However, our good fortune has come to an end. Due to the current economic conditions, many life insurance carriers are finally increasing their term life prices. This includes Anico life, West Coast Life, Protective Life, who both raised their term pricing in March, and now we’re looking at substantial increases by Reliastar (ING), whose products are due to increase on April 27th, 2009. According to Robert Barney, President of Compulife, other carriers are expected to follow suit.
American General is another carrier who raised prices on their Select-A-Term products this year, and especially on their Return of Premium Select-A-Term policies. For example, just 10 months ago, I helped a 41 year old male in standard health purchase a 30 year return of premium policy from AG with a face value of $500,000. He is paying $187.84 per month. Today, a 41 year old wanting the same policy from AG would pay $241.99, a 22% increase!
My recommendation is if you are looking into life insurance, buy now rather than later. If you are applying with ING, get your application in before April 27th for lower pricing. For your convenience, an up-to-date quoting form is provided on the right hand side of this page so you can see which carriers are now offering the lowest prices on term life insurance.
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