Life insurance is getting cheaper. Be it permanent life insurance- whole life or universal life insurance or term life insurance, the rates are expected to drop further in 2006. The fall is attributed to improvement in mortality and the stiff competition in the market. The introduction of “riders” to remove the deficiencies in the life insurance policies contributed to a rise in popularity of life insurance.
The lowest rate for term insurance in 2005 was more that 50 percent lower than the rate that existed a decade ago.
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Medical advancements are also keeping people alive longer, and another reason why life rates have gone way up. The down side to people living longer? It is really affecting programs like social security, which are also based upon life expectancy.
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