Life Is Getting Cheaper

A great thing happened to the life insurance buyingDon't assume you're uninsurable if you have health
public in the year 2002, the industry switched over toproblems. Hartford Life Insurance Company has
new "Mortality tables" (also referred to as Lifelowered the annual premiums for women who have
Expectancy Tables). This means that the cost of lifebeen treated for stage-1 breast cancer and men who
insurance in the last 5 years has substantially beenhave been treated for prostate cancer, been
reduced.operated on and have a good prognosis. Prudential
An insurance premium is made up of three basicInsurance Company announced its lowering premiums
components:for people who have been successfully treated for
1. Life Expectancy (How many years you're going toheart disease. Prudential Financial lowered premiums
live)for prostate cancer survivors several years ago, and
2. Insurance company expenses (Costs of doingit recently reduced rates for survivors of breast and
business)bladder cancer, says Mike McFarland, a vice president
3. Insurance company yield on investmentsat Prudential.
So, when your life expectancy increases, theThough insurance companies have reduced rates you
company can expect to keep getting your annualmust shop around. If you're healthy, you still may not
premium for many more years giving them morequalify for the best rates. If one of your parents
money to invest for a longer period of time with thesuffered from a serious illness at an early age, or if
projection that there will be less deaths (money toyou smoke you won't get the best rates.
pay out in death claims) leaving more money availableOn a typical term policy, getting the lowest rate on
to invest.premiums could save you $100 to $250 a year.
This one factor alone has substantially reduced theStandards for preferred rates vary among insurers.
annual cost of life insurance premiums.Average annual rates for a 40-year-old non-smoker
Another factor in the cost of insurance is your health.who buys a $500,000 10 Year Term Life policy with
With the new advances in medicine, people are livingpreferred rates since 1994:
longer due to earlier detection of problems and1996 $660 - 1998 $515 - 2000 $480
state-of-the-art drugs keeping these problems under2002 $395 - 2004 $375 - 2006 $352
control. These advances are making it possible forDon't you think it's time to have your current life
insurance companies to have more lenientinsurance policies reviewed?
underwriting, further reducing the annual premiumRemember, Life is Getting Cheaper!
cost of your life insurance.