If you didn’t already know term life insurance has been at an all time low for the past several years now. Unfortunately, the recent credit collapse has had an effect on life insurance premiums, according to Bob Barney, president of Compulife Software, Inc., a corporation that designs life insurance comparison software used by insurance companies and agents.
Many companies have been raising their premiums and/or canceling some of their longer term policy programs such as 30 year term policies. According to Barney, though a number of companies have recently increased their premiums, a number of them have not yet done so. The result is that right now it makes sense for consumers to do some comparison shopping today.
It is important to notice that, the insurance companies cannot increase your monthly premiums as long as you have a term policy with guaranteed premiums. Only newly issued policies are subject to the premium increase.
Some companies announce the increases in their premiums as to give agents some time to allow outstanding applications be submitted before the deadline dates are established. If you are currently evaluating the purchase of a new life insurance policy, or if you are currently shopping for quotes, be sure to ask your life agent if the monthly rates are subject to change soon. If so, do not hesitate to submit your applications before the cut off date. This is so that you don’t receive your approval with a higher premium than what you were originally quoted only one month prior, no one likes surprises that last 20 – 30 years.
