New Resolve for a New Year

by Efin Advisor | December 17, 2007

At this time of year, we look back, we look ahead. We think about the choices we’ve made in the past. We resolve to do better in 2008.

While we’re in the reflective mode, we might do well to consider the state of our insurance coverage. We don’t drive an uninsured car. We expect to carry homeowners’ insurance. We try very hard to maintain adequate health coverage. But when it comes to life insurance, we’re sometimes reluctant to make the investment.

This New Year offers reasons to reconsider.

Several industry trends, tracked by the nonprofit Life and Health Insurance Foundation for Education (LIFE), ought to make buying life insurance a more attractive option to consumers:

• Medical problems are no longer an automatic roadblock
As more effective treatments for such pre-existing medical conditions as cancer, heart disease and diabetes extend life, underwriting conventions change to reflect the new realities, making life insurance accessible to- and affordable for – more consumers. As doctors and researchers become even more efficient in tracking long-term survival, this trend is expected to continue.

• Combination products offer increased flexibility of coverage
Combinations of insurance products are coming online as packaged policies that target consumers with specific needs. According to a recent study by Life Insurance and Market Research Association (LIMRA), consumers can expect to see more policies with add-ons like the long-term care policy riders currently being offered to retiring Baby Boomers.

• Term life insurance premiums are becoming less expensive
Competition between carriers, together with the extended life expectancies, contributes to the current reduction in rates, a trend likely to carry over into 2008, according to LIMRA. The modestly priced Term Life insurance has proved especially attractive to young families.

This New Year, put some real resolve behind your resolution to take care of your own and your family’s insurance needs. Consult with an insurance professional to make your choices in 2008 wise ones.

All facts are from LIMRA International’s life insurance consumer studies.

About LIFE

The nonprofit Life and Health Insurance Foundation for Education (LIFE) was founded in 1994 in response to the public’s growing need for information and education on life, health, disability and long-term care insurance. LIFE also seeks to remind people of the important role insurance professionals perform in helping families, businesses and individuals find the insurance products that best fit their needs. To learn more about these topics, please visit http://www.lifehappens.org/.

THe Life Insurance and Market Research Association (LIMRA), is an international research, consulting, and performance improvement organization that helps more than 800 insurance and financial services companies in 60 countries increase their marketing and distribution effectiveness.

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