Act Now To Avoid Higher Life Insurance Rates


You might want to lock in life insurance premiums now, before they increase.

You’ve probably seen the data showing that life expectancy in the U.S. has been declining. The decline first was detected before the pandemic, due to the opioid epidemic and some other factors.

The Covid-19 pandemic caused a further decrease in life expectancy.

The death rate in the U.S. among people ages 18-64 increased 40% from pre-pandemic levels, according to the CEO of insurer OneAmerica, Scott Davison.

Most of the deaths are not attributed to Covid on the death certificates, according to Davison. But it’s clear death rates increased after the pandemic began.

Disability claims also are increasing.

Davison said all insurers are reporting similar experience on death rates. The higher death rates among working age Americans are likely to hurt insurance company profits in the short-term and cause premiums to rise.

Several sources estimate that life insurers in aggregate paid about $35 billion pandemic-related death claims in 2021, a significant increase from previous years.

Insurance companies are starting to reflect lower life expectancy by charging higher premiums on life insurance. Group life insurance premiums were the first to reflect the new rates. Premiums on term life and permanent life also are going to increase.

People who have or anticipate needing additional life insurance shouldn’t delay. You’ll probably save money by obtaining the insurance now and locking in premiums before they rise any higher.

Products You May Like

Articles You May Like

New Video Takes A Peek Inside A $25-Million Los Angeles Midcentury Mansion
It’s best to stay the course with your 401(k) amid choppy markets. But there are moves you can make to get ahead
Crypto exchange FTX U.S. moves into stock trading
Reality TV shows based on real estate are ‘horrible’ for the industry, says brokerage CEO
Stephen Roach calls stagflation his base case, warns market is unprepared for the consequences