Catch The Falling Rates
Monday, November 27th, 2006–By Priya Jestin, Staff Writer
After a year of badgering the general public for higher rates, the insurance industry seems to be finally cooling off. And the best thing about this — prices are falling, especially insurance rates.
Life insurance is one area where many consumers have seen a drop in rates. A welcome change but may we ask: Why the fall? Well, the most obvious reason is longevity. People are living longer, which means insurance companies also have longer periods before they have to hand over the insurance benefits.
But a more important reason for the fall in prices is climatic. You have to literally thank the skies for this drop. In comparison to last year’s roar, this year’s hurricane season was just a meow. This means insurance companies did not have to dig deep into their coffers to pay for rebuilding parts of the country. Also, post-Katrina, insurance companies were charging unbelievably high premiums and are on a financial high right now. Most insurance companies are reporting high third-quarter net incomes as compared to last year.
So, have you taken advantage of these changes? Now’s the perfect time to ask your current insurance provider to reconsider your rates. All you need to do is gather quotes from various companies and call up your provider. According to estimates, you stand to gain a reduction of at least $ 100 per year.