Term Rates at “All-Time Low”

[Brian Anderson]

Lifequotes.com is trumpeting news this week about a new survey they did of 50 leading life insurance companies this month that “confirms life insurance rates are now at all-time lows.”

Is that really saying anything, or have term life rates hit a new “all-time low” pretty much every day the sun has risen in recent years? I know it’s just a promotional press release aimed at consumers, but just curious - has there been any significant further reduction in term rates of late?

Life Happens is fond of saying term life rates have dropped about 50% in the past decade when trying to dispel the general public’s overestimation of the cost of life insurance. Any predictions on what rates will do in the next 5 years?

https://prnmedia.prnewswire.com/news-releases/lifequotescom-life-insurance-rates-fall-to-all-time-lows-great-deals-abound-for-life-insurance-shoppers-300221139.html?tc=PRNJ_email_html_headlines

 

[Robert Barney]

Lifequotes.com is trumpeting news this week about a new survey they did of 50 leading life insurance companies this month that “confirms life insurance rates are now at all-time lows.”

Is that really saying anything, or have term life rates hit a new “all-time low” pretty much every day the sun has risen in recent years? I know it’s just a promotional press release aimed at consumers, but just curious - has there been any significant further reduction in term rates of late?

Life Happens is fond of saying term life rates have dropped about 50% in the past decade when trying to dispel the general public’s overestimation of the cost of life insurance. Any predictions on what rates will do in the next 5 years?

https://prnmedia.prnewswire.com/news-releases/lifequotescom-life-insurance-rates-fall-to-all-time-lows-great-deals-abound-for-life-insurance-shoppers-300221139.html?tc=PRNJ_email_html_headlines

I would dispute that comment. The all time low for term rates was most likely 1999, pre-triple-X. Further, we have been on the new "bottom" for the last couple of years, post Triple-X. While some companies may lower one group of rates, they are also raising another.

But don't take my word for it, check out some actual history and compare it with current premiums:

Term4sale - History of Term Life Insurance Rates

On the flip side, no-lapse UL rates have been steadily on the rise and I predict they will continue to rise. You snooze, you lose. I think most companies have been holding on, expecting a swing in interest rates, and many are becoming increasingly resigned to the idea that there will be no upturn, at least in the short term.

Last week I posted new no lase UL rates for one company (higher) and will post another company with new rates (higher) this weekend.

One thing is for sure, there will be no new break-through low rates. If you are waiting to buy because it might get cheaper, the time to keep waiting was about 3 to 4 years ago.

 

[rousemark]

Lifequotes.com is trumpeting news this week about a new survey they did of 50 leading life insurance companies this month that “confirms life insurance rates are now at all-time lows.”

Is that really saying anything, or have term life rates hit a new “all-time low” pretty much every day the sun has risen in recent years? I know it’s just a promotional press release aimed at consumers, but just curious - has there been any significant further reduction in term rates of late?

Life Happens is fond of saying term life rates have dropped about 50% in the past decade when trying to dispel the general public’s overestimation of the cost of life insurance. Any predictions on what rates will do in the next 5 years?

https://prnmedia.prnewswire.com/news-releases/lifequotescom-life-insurance-rates-fall-to-all-time-lows-great-deals-abound-for-life-insurance-shoppers-300221139.html?tc=PRNJ_email_html_headlines

The page you link to is password protected ..

 

[goillini52]

The page you link to is password protected ..

Are you a journalist? It's a site for journalists. I couldn't get in either.

 

[WinoBlues]

I have been in business for a long time. I do not care if rates are low, I sell higher face amount for the same premium. If rates are high I sell smaller face amounts for the same premium, if is a budget sale. Otherwise, I sell the needed face and the price is the price.

 

[Brian Anderson]

Shoot - I'm out of town this weekend and without password to access that press release. Will post content of it on here Monday - sorry about that... It did include some examples of sample rates for California residents and more info about their survey.

 

[Brian Anderson]

Here's the text of that press release...

Lifequotes.com: Life Insurance Rates Fall to All-Time Lows; Great Deals Abound For Life Insurance Shoppers

DARIEN, Ill., Feb. 17, 2016 /PRNewswire/ -- Lifequotes.com, the online, paperless life insurance exchange, announced today the results of a new survey of 50 leading life insurance companies that confirms life insurance rates are now at all-time lows.

"Continuing a 15 year trend, life insurance rates are now at all-time lows," said Rob Goss, executive vice president. "In addition to low prices, we've even seen a loosening of some underwriting guidelines in recent years."

For example, some of the lowest premiums include:

* A 30 year-old female who stands up to 5'8" in height and weighs as much as 190 lbs. can now buy a $250,000, 10-year term life policy for only $102 per year.
* A 40 year-old female with a cancer death in her immediate family history can buy $250,000 of 30-year level term insurance for just $299 per year.
* A 50 year-old male can buy a $500,000, 20-year term life policy for $924 per year, even if he smokes a cigar during his weekly golf outing.
* A 55 year-old male whose blood pressure is controlled by medication can now buy $1 million of 20-year term life insurance for only $2,743 per year.

"Because life premiums are at or near historic lows, buyers can now lock-in great rates for their choice of ten to thirty years," Goss continued.

Economic uncertainties have made the need for basic life insurance more important than ever because personal life insurance proceeds are generally not taxed as income to the beneficiary.

When it comes to life insurance, many U.S. adults are uninsured or underinsured. According to the Life Insurance Market Research Association (LIMRA), a whopping 30 percent of U.S. households (35 million) do not have any life insurance and only 44 percent of U.S. households own an individual life insurance policy. Individual life insurance sales are currently at a 50-year low.

Lifequotes.com advises that it is important to obtain the advice of a competent, licensed insurance agent and have a full understanding of what the conversion and/or renewability privileges are for the policy you are considering.

According to the Life and Health Insurance Foundation for Education (Life Happens | The Life and Health Insurance Foundation for Education (LIFE)), the cost of basic term life insurance has fallen by about 50 percent over the past decade.

Market survey methodology
Lifequotes.com polled 50 leading U.S. life insurance companies to find the best rates available on the popular $250,000, $500,000 and $1 million term life insurance policies. All companies polled are rated either "Excellent" or "Superior" by A.M. Best Company, an independent rating organization. The sample applicants do not use tobacco and range from 30 to 55 years of age. The tables above contain the lowest possible rates found for the 10, 20 and 30-year level term life policies for a sample California resident.

 

[kgmom219]

I don't sell this, but I just bought a 20 year term policy at the same rate I got it 20 years ago at 25. There's a $3/month difference. So based on personal experience, I'm going with yes, the rates are lower.

 

[WinoBlues]

Sounds like an ad.

...............

 

[kgmom219]

Sounds like an ad.

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Brian's post or mine?