Low Interest Rates Raise Term Life Prices
Term life is becoming costlier and a bit harder to find. Following a decade in which prices fell to all-time lows, premiums for new term policies last year rose on an average of 3%, according to Tom Newsad of Newsad Insurance Services. Newsad forecasts more increases for the coming year. The culprit? Sickly yields on bonds in which insurers invest most of customers’ premiums. Hit hardest are policies offering longer term plans such as those for twenty and thirty years. Term rates are up 5% on those carriers offering those rates. Shopping your rates with an independent agency such as Newsad Insurance Services will give you the best chance to shop rates across the board. One should only consider buying policies with A rated companies or better.