Life Insurance Rates Expected To Fall Further In 2007

(Life insurance rates have been going down consistently lately, and a new report predicts that rates will fall even further in 2007.)

This is good news for everyone, and should be a determining factor for all people who have been holding off on taking out a life insurance policy for whatever reason.

Life insurance is obviously a touchy subject for most people since it deals with the subject of untimely death. But implementing a life insurance plan now will give your family and loved ones the financial security they deserve should something happen to you.

A September 19, 2006 article by The Insurance Information Institute, "Life Insurance Premiums Expected to Decline by 4 Percent in 2007, says the Insurance Information Institute: Rates Fall to Lowest Level Ever" discusses this prediction for the insurance industry and consumers.

"Premiums for individual life insurance-both term life and 'permanent' insurance-will drop, on average, by 4 percent in 2007, according to the Insurance Information Institute (I.I.I.).""'This continues a generally downward trend in life insurance premiums, which began several decades ago,' said I.I.I. economist and life insurance spokesperson Dr. Steven Weisbart. 'The 4 percent drop projected for 2007 is in line with the average 5 percent per year drop beginning in 2000,' added Dr. Weisbart. 'The result is that, in 2006, premiums are less than half of what they were over a decade ago.'"

This amounts to tremendous savings for those people who are looking to take out a life insurance policy within the next few months.

Many people have been led to believe that life insurance is only for the wealthy and most people can not afford it. This is not true.

With these low rates and premiums, virtually any income amount can easily introduce a life insurance plan into their financial portfolio without feeling a monetary pinch at all.

"The I.I.I. estimates that, for example, the annual premium for a 40-year-old male nonsmoker buying a $500,000 20-year life insurance investment policy in 2007 will be $615 if he qualifies as a 'standard' risk and $340 if he meets the more stringent requirements of a 'preferred' risk. Rates for women, younger people and for larger amounts of insurance would be lower."

The III expects all types of life insurance products to see a drop in their rates.

"Premium rates for traditional whole life, universal life, and variable universal life insurance are also expected to be lower in 2007. The premiums for these products-which are designed to pay a death benefit no matter when the insured person dies-are driven by expected investment returns as well as by the same forces that affect term rates, Dr. Weisbart said."

The reason that life insurance rates are going down is because people are living longer than ever before, thus reducing the risk that insurance companies will have to pay out a policy, resulting in lower premiums and rates.

"'The drop in life insurance rates couldn't come at a better time for families with young children,' said Dr. Weisbart. 'It's important that they have life insurance to protect the income their dependents rely on.'"

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