Anyone who bought term insurance more than five years ago should consider shopping for a policy again. Because of much longer life expectancy and higher investment returns, premiums on term life insurance have declined significantly. In fact, over the past decade term premiums have declined by about 50%.
Insurers also are being more generous in some of their underwriting rules because of medical advances. Heart disease, diabetes and other conditions now often can be treated effectively for decades. Insurers realize that and no longer are declining to insure or offering only their highest rates to people with some of these medical conditions.
You probably won’t get the full benefit of the lower premiums, because you are older than when you first purchased your policy. Insurers still are raising premiums as an insured ages. But the other factors have caused such dramatic premium declines that for many people purchasing a new term policy now should result in substantial savings over a policy that is at least five years old.
Use several sources to shop for policies. No insurance agent or broker can deal with all insurers. There are a number of web sites that offer term life insurance comparisons, and we have links to them on the members’ section of the web site. Some insurers deal only through their agents. Some others, such as USAA, deal only with those who call them or visit their own web sites.