Some life insurance rates remain at all-time lows as prices increases continue
Life Quotes, Inc. announced the results of a new life insurance pricing survey that concludes many term life insurance rates remain at all-time lows amidst a market of widespread price increases. This data is the result of a Life Quotes, Inc. survey of 25 leading life insurance companies’ rates for new applicants effective January 1, 2010.
“Despite the frenzy of re-pricing activity that has taken place in the term life insurance market this year, there are still some incredibly low premiums to be had,” said Kat Zeman, editor for Life Quotes, Inc. “We found that females wanting $250,000 or $500,000 of coverage are faring better than males in terms of dodging the price increases.”
The December 1, 2009 Life Quotes survey of term life insurance prices revealed that rates for the following categories of life insurance buyers remain at all-time lows:
– Females, age 30-35, $250,000, 30 year initial rate guarantee
– Females, age 45, $250,000, 20 year initial rate guarantee
– Females, age 50, $250,000, 10 year initial rate guarantee
– Females, age 30-35, $500,000, 20 year initial rate guarantee
– Females, age 50, $500,000, 10 year initial rate guarantee
– Males, age 50, $500,000, 20 year initial rate guarantee
– Females, age 50, $1 million, 30 year initial rate guarantee
“In 2009, many life insurance companies raised their rates, but a few of them, such as American General and Genworth, are actually bringing them back down again,” remarked Phil Young, a market reporter at Life Quotes, Inc. Young continued, “We’ve been tracking life insurance rates for 25 years and can confirm that the cost of basic term life insurance has fallen by about 50 percent over the last decade. The long price war that dates back to the 1990′s is continuing, which is terrific news for life insurance shoppers.”
Today’s cost for a 10-year, $250,000 term life policy for a healthy 40-year-old man or woman is only $140 per year (see chart for more examples).
Katherine Lovesee, a Wisconsin resident who recently applied for a $50,000 no-exam term life policy from Fidelity Life Association through Life Quotes, Inc., said that good rates are one of the reasons she has decided to shop around for insurance right now – along with the fact that her term life policy is set to expire soon. “I wanted to get a better rate before they go up,” Lovesee said.
Tonya Lugo, a 42-year-old mother of five in Virginia, decided to shop around for $1 million of coverage with a 20-year initial rate guarantee. While her husband has military life insurance, she wanted more coverage to protect her family. Lugo shopped rates at www.lifequotes.com and found her best buy to be a policy costing $685 per year from Lincoln National Life Insurance Company. “I just felt it was time to get some more insurance for myself and my children… so we could have that added security,” Lugo said.
Market survey methodology
Life Quotes, Inc. polled 25 leading U.S. life insurance companies to find the best rates available for coverage amounts of $250,000, $500,000 and $1 million term life insurance policies as of December 1, 2009. Each of the companies examined have top-notch ratings, meaning they are rated either “Excellent” or “Superior” by A.M. Best Company, an independent rating organization. A total of 108 different “cells” of varying age, sex and coverage amounts were examined for hypothetical California residents, ranging in age from 30 to 55, who do not use tobacco products.
Source: Life Quotes, Inc.