- Life insurance premiums continue to decrease. About three-fourths of Americans think life insurance is too expensive to fit into their family budget, but the reality is that's not the case, according to David Woods, president and CEO of the Life and Health Foundation for Education (LIFE). In 2008, the Insurance Information Institute estimates that term insurance premiums will drop approximately 1 percent, continuing a long trend of declining life insurance rates. Term life insurance rates are generally half of what they were a decade ago, due in part to increases in life expectancy. The cost of permanent life insurance products has declined, as well.
- New combination products offer consumers more options. Thanks to recent changes to the tax laws, consumers can now purchase hybrid products that combine the benefits of life and long term care insurance, a welcome development for an aging population. Consumers have always been able to accumulate cash values in their permanent life insurance policies on a tax-deferred basis. Now, consumers can withdraw money from the cash-value portion of their policies to pay for long term care services, and the withdrawn funds aren't taxable.
- Changes in underwriting make obtaining life insurance easier. If clients think high cholesterol, a job that takes them to dangerous countries, or even a past bout with cancer will prevent then from qualifying for life insurance at reasonable rates, they might be mistaken. Different companies will assess certain risk factors differently. For instance, some companies may offer very competitive rates for smokers but won't be competitive when it comes to insuring people with high cholesterol. "If you're what the insurance industry calls a 'special risk,' the key is to find a good agent or broker who will shop your case around to dozens of companies and find the best solution for your particular situation," advises Woods.
From the July 01, 2008 issue of Agent’s Sales Journal • Subscribe!
