Term insurance rates on the rise

Yesterday the Wall Street Journal reported that term life insurance rates, after years of falling, are now reversing course and starting to go up. It may be time to re-evaluate your life insurance need and lock in the proper amount.

Consumers have benefited over the last 20 years as term life rates have been falling. This was largely due to improved mortality tables and more competition in the industry from the introduction of web-based insurance sales. But that trend changed earlier this year as many companies announced premium increases, largely thanks to the recent credit crisis. With tighter credit lending, insurance companies have had to pay more to borrow money to maintain their required cash reserves. In addition insurers are receiving lower returns on their investments just like the rest of investors, which makes it harder for them to maintain reserves and cover their expenses.

Now is a good time to take a look at your life insurance coverage. If your policy doesn't provide enough coverage, is annually renewable or has a level term that ends too early, you should think about adding to or replacing your policy. Applications can take weeks to get approved and your rate is not locked in until you receive approval so don't delay. In addition your health and age affect your rating, more good reasons to get the coverage you need as early as possible. However it is very important not to cancel your current insurance until a new policy is in place.