Does Your Life Insurance Cost Too Much?
I don’t think you can disagree with me if I say that today you can get a life insurance policy at the price of peanuts. Life is indeed getting cheaper. Longer life expectancies and improved technology are other factors that have brought down insurance rates. Insurance companies have also become more efficient at collecting information and assessing potential candidates.
However, the good news doesn’t seem to have reached a majority of Americans. There are quite a few people still holding on to more expensive policies that they bought years ago or they many not have insured themselves highly enough. According to experts, the salary that many employers offer their staff isn’t enough to leave dependents. The paradox here is that though it is cheaper than ever to complement their coverage with other policies, not enough people are doing it!
The funny thing is that while it becomes increasingly difficult to keep yourself healthy thanks to increasing health insurance policy, life insurance has become cheaper. And most insurance firms are not sure how long this downfall will continue! Just look at these figures: In 1990, a healthy 40-year-old man would have paid $1,405 a year for $500,000 in insurance for a 20-year period. That same policy now costs less than $400!
If you are healthy, you could save money by replacing the older insurance with a new 10-year term policy for $525 a year or a new 20-year term policy for about $1,000 a year. The savings are even higher for policies for $1 million or $2 million in coverage. However, about 24 million U.S. households have no life insurance, according to recent research. Consumers cite a number of reasons for not taking insurance including plain laziness, confusion and concerns about cost. And nearly 20 percent say it is ‘unpleasant to think about dying’!
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