Life insurance companies have been fairly aggressive in lowering prices over the past several years, "but some companies may have felt that the pendulum went a little too far," Weisbart says. That's why we see rate adjustments for certain age bands and coverage levels but not others.
Rate increases for younger buyers (ages 25 to 35) could be due to a change in death rates. "A minor uptick in auto accidents or homicides could turn around what appeared to be a downward trend," Weisbart says.
What you can doSo how should a life insurance shopper navigate these changing waters? Here are some tips:
- The central advice for life insurance shopping remains true: Shop around and compare rates from multiple companies. Not all companies have announced price increases. All-time-low rates are still out there.
- Get rate quotes for more than one coverage amount. Rate adjustments are not being seen across all policy sizes. You can still get historically low rates at certain coverage levels, depending on the company.
- A rate quote you received a few months ago may not be valid today, or it may not be valid much longer. You can lock in a rate by submitting an application.
- Many companies have not announced price changes. Use this as an opportunity to lock in a good rate.
- Know about ways to save money on life insurance.
Published April 29, 2009