Finding Affordable Life Insurance in a Bad Economy
February 9th, 2009
Even though the recent tough economic times have made it hard for most Americans to think well about their financial situations, they haven’t put aside their life insurance plans. Many policies are now cheaper than they’ve ever been and many investment losses in portfolios can be written off.
Even though many people buy life insurance in connection with major life events such as births or marriage, many people don’t take the time to evaluate their policies on an annual basis. Because of this, people are paying more for life insurance plans than the same or similar plans that are currently available on the market.For example: Norman Melnick, one of the creators of the Magic Marker, was overpaying his life insurance coverage by over $4,000 a year. Over ten years, Mr. Melnick would have saved $54,336 in premiums to receive the same exact coverage!
Getting Cheaper All the Time
Life insurance policies purchased before 2001 were most likely based on mortality numbers from the 1980s. Plans that have been purchased since 2001 make use of the more relevant 2000 census figures which reveals a dramatic increase in life expectancy which reduces the cost of life insurance premiums.
Because people are living longer, life insurance companies are finding it easier to insure their customers, and passing on those savings to their policyholders. By evaluating your life insurance policy and the premiums you’re paying now, you may find that you can actually pay much less for the same policy coverage today.
If you look over the life insurance policies that you have in your portfolio and find that the premiums you’re paying are far too high – compared to those paid by friends and family for the same coverage – then perhaps you should have a look at the new plans available. If you can save any money at all on your life insurance, you can put these savings into other investments and not be any worse off at all. Be sure to have your accountant or financial advisor look over your life insurance plans to see if a newer policy could save you money.
photo credit: TheTruthAbout…
Tags: bad economy, changing plans, Life Insurance, life insurance copmpanies, overpaying, recession
