Count Down to 2008; LIFE Foundation Reviews Top Life Insurance Trends for the
New Year
Falling Premiums, Product Innovations and Advances in Underwriting Make 2008
an Even Better Time for Consumers to Consider Purchasing Life Insurance
ARLINGTON, Va., Dec. 12 /PRNewswire/ -- As the end of year approaches,
it'll soon be time to think about how you can enhance your financial plan for
2008, keeping in mind that there may not be a better time to purchase life
insurance. Decreasing life insurance premiums, innovative product enhancements
and upcoming changes in underwriting make it an ideal time to put financial
security at the top of your New Year's to-do list.
"As costs continue to go down and the number of product options available
increase, there is no longer an excuse for not having adequate life insurance
coverage," says David F. Woods, CLU, ChFC, president of the Life and Health
Insurance for Education. "In the New Year, Americans should really look to
take advantage of these trends and work with a qualified insurance
professional to ensure they are selecting the best possible coverage to fit
their specific needs."
To help consumers start the New Year off right, the non-profit LIFE
Foundation reviews four key trends it hopes will encourage more Americans to
get the life insurance coverage they need in 2008:
Life insurance premiums continue to decrease -- "About three-fourths of
Americans think life insurance is too expensive to fit into their family
budget, but the reality is that that's no longer the case," says Woods.
Industry experts say that term life insurance premiums have reached an
all-time low, in part due to people living longer and increased competition
among companies. Permanent insurance has also seen a slight decrease in cost.
However, Woods notes that Stranger Originated Life Insurance products (STOLIs)
could have an adverse effect on pricing if companies decide to raise premiums
for older insured's in an effort to offset the potential influx of guaranteed
payouts happening around the industry. Consumers should take advantage of
these current low rates, whether to purchase more coverage or even qualify for
lower rates on the coverage they already have. LIFE's online calculator
(www.lifehappens.org/howmuch) can help people get started evaluating how much
life insurance they need.
Term life insurance maintains popularity, with whole life close behind --
Because of its affordability, term life insurance continues to be the product
of choice for many Americans, especially young families. According to LIMRA
International, industry-wide sales for term life insurance policies increased
eight percent from 2006 to 2007. The current volatility in the stock market
means that Americans are seeking more stable, guaranteed products. Whole life
policies have gained traction among those who are looking for something
permanent and predictable over products such as variable life, whose benefits
vary depending on the stock market's performance. In 2008, consumers will
continue to have a multitude of choices for finding the right life insurance
policy to fit their needs and can access LIFE's online decision guide at
www.lifehappens.org/whatkind to get started.
New combination products offer consumers more options -- Industry experts
agree that combination insurance products will continue to gain popularity
among consumers and insurance carriers in 2008. For example, many consumers
approaching retirement are demanding lifetime products that include long-term
care features. According to LIMRA International, many insurers have already
begun selling life insurance or annuities with long-term care benefit riders.
Therefore, in the coming year it will be even more critical for consumers to
work with a qualified insurance professional who can navigate the various
options available and find the best product to suit their needs.
Changes in underwriting make obtaining life insurance easier -- Until
recently, it was difficult to purchase life insurance if you had a history of
medical problems, but advances in medical treatment and research are making it
easier to qualify for life insurance. Some insurers have and continue to lower
their rates for people with various medical conditions. As doctors and
researchers develop more efficient ways to track the potential for long-term
survival, patients who have had various forms of cancer, diabetes and heart
disease are finding they can become eligible for life insurance policies.
Consumers should contact various insurers to compare rates and should keep in
mind that the more information consumers can provide about their medical
history, the better.
For additional information about these topics or to speak with a LIFE
expert about industry trends, visit www.lifehappens.org.
About LIFE
The nonprofit Life and Health Insurance Foundation for Education (LIFE)
was founded in 1994 in response to the public's growing need for information
and education on life, health, disability and long-term care insurance. LIFE
also seeks to remind people of the important role insurance professionals
perform in helping families, businesses and individuals find the insurance
products that best fit their needs. To learn more about these topics, please
visit www.lifehappens.org.
CONTACT: Brooke Parker
212-445-8142
-or-
Katharine Carver
212-445-8210
SOURCE LIFE Foundation
Brooke Parker, +1-212-445-8142, or Katharine Carver, +1-212-445-8210, both for
Life Foundation
