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Why Buy Life Insurance Now? It’s More Affordable Than Ever

Why Buy Life Insurance Now? It’s More Affordable Than Ever

One thing we know for sure is that prices rarely go down over time. If you’ve done research on term life insurance, you’ve probably found it’s one of the most affordable types of life insurance. And, while costs of some other types of insurance have risen in the last decade, term life insurance continues to decrease in price. In fact, life insurance policies, are up to 20% less expensive today than they were in 2000.

There’s no reason to be skeptical of the price decrease. The reasons for the drop have nothing to do with life insurance itself. Term life policies have been structured as a means for providing financial protection for decades, and highly-rated policies have remained readily accessible. Instead, the price decrease can be explained by the following:


Overall, technology continues to improve every day. Medical technology alone is helping with the early diagnosis and more effective treatment of diseases. How this impacts the life insurance industry is that people are living longer, paying into the insurance pool for a longer period of time and fewer payouts are needed – thus, helping to decrease overall rates.

Technology advancements aren’t eluding the life insurance industry either. Life insurance companies can now make more accurate health predictions to assess how much risk (the chance of them needing to pay out your policy) you represent to them. With the improved ability to analyze data from current and past policy holders, the industry is able to provide more affordable pricing because of more accurate health and life expectancy predictions.

Cost Comparisons

The internet is an amazing resource for researching and analyzing life insurance options. It’s easier than ever for consumers to compare policies, ratings and pricing – that means life insurance companies need to be more competitive in order to win your business.

Term Life Insurance Is Affordable

The drop in term life insurance prices is good news for individuals and families who are shopping for policies. In 1998, a 40-year-old man who doesn’t smoke could get a $500,000 policy with a ten-year term for about $40 a month. In 2012, a buyer with a near-identical profile would pay about 25 percent less for the same benefits.

While no one knows where life insurance prices are headed, it doesn’t make sense to put off purchasing a policy in the hope of a better rate.. You lock in your best premium amount when you are at your youngest and healthiest. What’s most important is that you purchase a policy, when needed, to ensure financial security for your family.

Considering purchasing a term life insurance policy? If so, check out some of our previous blog posts to learn more about coverage and selecting the right policy for you and your loved ones: