The life insurance industry has undergone a transformation over the past three decades. Factors such as lower mortality charges, cost efficiencies, special riders, aggressive underwriting, competitive pressures, and access to capital markets have forced insurance companies to create new life insurance products that may provide a better value than years past.
Factors that may affect the performance of existing permanent life insurance policies:
Underlying interest rate on cash value
Premium payment date
Carrier directed investments (whole & universal life)
Stock market performance (variable life)
Actual expense & mortality changes
Many new market policies now have lower internal mortality costs. Recent mortality tables helped many companies decrease pricing on certain products. Carriers do not typically pass these cost savings onto existing policyholders, so to take advantage of the lower cost, it may be advantageous to purchase a new policy.
The financial health of many companies has changed over the past decade due to economic conditions. It may be wise to evaluate the financial well-being and stability of the insurance carriers.
There are many newly added coverages and special riders available today. Carriers may also have promotional "shave" programs for certain undesirable health conditions that were not available in the past. The result can sometimes be a reduction in mortality costs.
With the new medical and mortality tables, many illnesses and diseases that were not insurable in the past may be insurable today. Contact us to explore.
*No fee or purchase of insurance is required to receive this service.