An article from USA Today on life insurance talks about the fact we’ve noted in this blog that you can get life insurance even less expensively than in the past and that the prices keep coming down. From the article: “. . .you can buy a lot of life insurance without spending a lot of money. Average premiums for individual life insurance have been falling about 5% a year since 2000, and they’re expected to drop an additional 4% in 2007.”
The article also mentions that millions of people don’t have enough to provide financial security for their families and says: “Millions of Americans have no life insurance, and millions more don’t have enough to provide financial security for their loved ones. That’s a shame, because if you’re reasonably healthy, you can buy a lot of life insurance without spending a lot of money.”
Life insurance premiums have dropped significantly in the past 12 years. Here are some sample annual rates shown from that article for a 40-year-old non-smoker who buys a $500,000 term life insurance policy with preferred rates since 1994. The article doesn’t say how long a term period they’re showing but it looks like 10 year term life insurance. 1994: $995, 1996: $660, 1998: $515, 2000: $480, 2002: $395, 2004: $375, 2006: $352.
If you go to the LifeInsure.com web site you can get more accurate quotes. A search at that site for the 40 year old male non-smoker shows the lowest preferred annual premium at $285 for a preferred rate for 10 year term and $460 for 20 year. With super preferred rates the annual rate shown is $210 for a 10 year term and $355 for a 20 year term. Remember that super preferred (or preferred plus) has very strict guidelines on health and family history. You can go to the lifeinsure.com website and check rates anonymously and instantly for yourself.