No body likes to get a price increase letter from their insurance company, but most of us will get one.
Did you know that in your 50’s you can be getting increases of about 15% per year ?
This means that your life insurance is going to double in price every 6 years.
Think about it, paying double what you are paying now, its not a nice thought.
Wouldn’t it be nice if there was a fixed price life insurance premium you could have that takes away the surprise of an increase each year.
The reason your Life Insurance is increasing is because the most common type of Life insurance policy that you own automatically increases in price every year. This type of premium is called “rate for age” or “stepped” and most life insurance policies sold today will be this way, the premium is linked to your age, so the older you get the more expensive your Life Insurance becomes.
When you arranged the Life Insurance the person probably didn’t even explain that you had an option on how the premium is calculated. You may find this annoying, and rightly so, the price of your insurance will start off affordable, but will eventually become very expensive. So over the life of the policy you will pay a lot of money.
Thats great for the insurance company, but not so great for you.
But there is another option, and its called a level premium, Level Life Insurance or Fixed price Life Insurance Premiums.
The great thing about Level premiums is that they will stay at the same price for the life of the insurance policy.
If you are wanting to keep a Life Insurance policy for a long time Level premiums are the best option. The price is locked in at the beginning. The premiums will be a higher monthly amount than the rate for age premiums, but in most cases this will be worthwhile in the long term as the stepped premium that increases every year will become higher than the Level premium.
If you are young now it is the best time to arrange a Level Premium, the level premium is locked in at a lower price so don’t wait, contact us and we will get you a great policy and a great price.
Even if you are in your 50’s dont be put off, Fixing your Life Insurance Premium will still keep it affordable for a much longer term, which means you have insurance in place much longer as well.
We can also convert your existing Life Insurance Policy to a Level premium for you.
Lets compare the two policies
Life Insurance of $400,000 on a 30 year female non smoker.
Rate for age Level to age 80
Monthly Premium : $25 per month $60 per month
What will my premium be
At age 49 $ 65 per month $60 per month
At age 54 $ 107 ” ” $60 ” ”
At age 59 $ 183 ” ” $60 ” ”
At age 64 $ 373 ” ” $60 ” ”
At age 69 $ 747 ” ” $60 ” ”
At age 79 $2,332 ” ” $60 ” ”
If you want to get a quote for a fixed price Life Insurance, click here to request a quote.