08/01/2018
NOW is The Best Time To Buy Life Insurance In 20 Years
It's never a bad time to buy life insurance. And because you can shop for life insurance online, it's never been easier. But it's also never been more affordable.
Life insurance rates are at a 20-year low. Why? Because insurance companies are getting better at handling longer lifespans, they're being smarter financially, and they're using technology to lower their costs.
Changes in mortality
It's a fact: People are living longer, which means they're outliving their term life insurance policies. If companies don't have to pay out death benefits as often, they can afford to lower the cost of policies. Medical improvements for conditions like diabetes, AIDS, and cancer also make policies more affordable for applicants.
Life insurance companies are also getting better at assessing risk and classifying applicants based on their health history. Overall, this makes life insurance companies better at setting costs for policyholders.
Changes in investments
Did you know life insurance companies make money by investing the premium payments you make? Just like you invest to save for retirement, companies are putting the money they receive through premiums to good use.
In recent years, due to low interest rates, insurance companies have begun to diversify their investments, looking at infrastructure and real estate investment opportunities. Regulators have also allowed them to be more flexible with how they use their cash and pass those savings along to you.
Changes in technology
New technology is reducing waste for life insurance companies. They can provide better, faster service through accelerated underwriting and use blockchains to prevent fraud, resulting in lower manpower costs.
Innovative startups like Policygenius are using online and robo-advisor platforms to operate more efficiently and help digital shoppers find better, more affordable policies..
At the end of the day, you should buy life insurance when you need it β like when you're planning on buying a house or starting a family β and low prices are just another incentive. But there's no guarantee that rates will stay as low as they are now. Interest rates can rise, industry regulations can change, and prices can rise. If you lock in your rates today, you can be sure your policy stays affordable for decades to come