Comments on: Five Causes Of Rising Life Insurance Premiums http://www.peppercoin.com/200809/five-causes-of-rising-life-insurance-premiums-2/ Just another WordPress weblog Thu, 05 Jan 2012 06:22:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chris Huntley http://www.peppercoin.com/200809/five-causes-of-rising-life-insurance-premiums-2/comment-page-1/#comment-672 Chris Huntley Wed, 08 Apr 2009 21:49:04 +0000 http://www.ridoe.net/?p=197#comment-672 You mentioned term rates have been decreasing for 10 years, in general. However, due to the current economic conditions, many life insurance carriers are finally increasing their term life prices. This includes Anico life, West Coast Life, Protective Life, and now we're looking at big increases by Reliastar (ING), whose products are due to increase on April 27th, 2009, and American General. Part of the problem is the life settlement market. This is the sale of a senior's life insurance policy to a 3rd party investor, like Life Partners Holdings or Coventry. In the past, the insurance carriers could count on 90% of all their UL policies to lapse. Now, however, the carriers must account for owners potentially selling their policies. The investor pays the premiums until the insured dies, and the carriers now have to pay out on a higher percentage of death claims. You mentioned term rates have been decreasing for 10 years, in general. However, due to the current economic conditions, many life insurance carriers are finally increasing their term life prices. This includes Anico life, West Coast Life, Protective Life, and now we’re looking at big increases by Reliastar (ING), whose products are due to increase on April 27th, 2009, and American General.

Part of the problem is the life settlement market. This is the sale of a senior’s life insurance policy to a 3rd party investor, like Life Partners Holdings or Coventry. In the past, the insurance carriers could count on 90% of all their UL policies to lapse. Now, however, the carriers must account for owners potentially selling their policies. The investor pays the premiums until the insured dies, and the carriers now have to pay out on a higher percentage of death claims.

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