Is the Cost Of Term Life Insurance Rising?
Posted by: BeamaLife Editor on 27 May, 2010
A few months ago, the word was spreading throughout the industry. There were magazine articles, and nightly news reports sending out the story that term life insurance rates were on the rise, after more than 10 years of declines.
But honestly, there’s very little historical information about the cost of life insurance. It’s not like the stock market, that’s tracked every moment of every trading day. And different life insurance companies charge differing amounts for the exact same coverage on the exact same person. So in a sense, it’s hard to say what’s truly going on, except in the most general of terms.
One article I read talked about how in the mid 1990s, the cost of a $500,000 term policy for a healthy 40 year-old man was close to $1,000 a year. By 1999, the article continued, the cost had dropped to about $425 per year for the same coverage. And by 2009, the cost had dropped further, to about $360. The alarming thing, according to the article, was that at the start of 2010 the cost had risen to $400.
Much of the decline in price can be attributed to the fact that people are living longer these days. The more time that exists between when you start paying for your life insurance policy and when the life insurance company has to pay your claim, the less expensive the life insurance can be.
And much of the increase can be attributed to what’s happening in the financial markets these days. Insurance companies are facing the same tight credit market that the rest of us are. Understandably, insurance companies have to be more concerned about their own financial futures than they needed to be just a few years ago.
So if the costs of life insurance really are on the rise, should you rush to purchase a new life insurance policy? Ask a local agent, and the answer is very often going to be “yes.” Ask us, and the answer is going to be “it depends.”
Ask yourself these two simple questions, First, is there someone or something that you care about that would suffer if you were to die? Think about your family, your business, your favorite charity or religious organization. And second, do you have enough money right now that you could set it aside for them?
If you answered “yes” to the first question, and “no” to the second, then I’d say it’s time for you to buy life insurance, regardless of what’s happening with the overall costs of coverage. Buy the policy that best fits your needs now. If prices go down later, you can “refinance” your policy and lock in the new, lower premiums.
And if you already have insurance, but haven’t checked prices in recent years, take a look at a new policy. You may find that there’s money to be saved. It all starts with a quick phone call to BeamaLife!
The Success Secret of the “Over 100” Crowd
Posted by: BeamaLife Editor on 13 May, 2010
One of the fastest growing segments of the population today is people who are more than 100 years old. A recent article states that back in 1990 there were about 37,000 of them here in the U.S. By 2008, the number had swelled to 84,000. And estimates state that by 2040, there will be more than 500,000 “centenarians” living in the United States.
Living beyond 100 years – that’s an amazing accomplishment! Because, as the article points out, people who live to 100 are not just people who made it to 80 and then tacked on an additional 20 years of physical and mental decline. People who live to be 100 often avoid the chronic illnesses associated with age altogether. No diabetes, no heart disease, no Alzheimer’s or Parkinson’s diseases.
Another interesting thing that the article pointed out was that centenarians were, as a group, much happier about their financial situations that any other age group. When asked, 95% of them responded that they had enough money to meet their needs, while 76% said that they even had enough to by the extras that make life even more enjoyable.
The article then went on to highlight a surprising fact. Of the centenarians surveyed, nearly 40% had no financial reserves whatsoever. And another 37% had enough money for life’s necessities, but no “extra” money for more pleasurable purchases. Yet, 95% felt they had all the money they needed to meet their needs.
As someone whose career is built around ensuring the financial futures of everyday people, I find that fact amazing. And inspiring. Because it points out something that I think is so important, but so simple, that it’s often overlooked.
We choose how to feel about our circumstances. Whether we have a lot or a little, we can always choose to be happy. It may be easier to feel happy when you have a lot of money, but at the end of the day, we’re the ones who choose to put a smile on our faces when we get up in the morning.
Let’s take a lesson from the valuable and inspirational members of our society. Let’s do the things that we know we need to do to secure our own financial futures, and let’s choose to be happy. And maybe we can be the inspiration for a future generation!
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