Why Universal Life Insurance Prices Are on the Rise
Due to a sales decline and the low interest rates sitting below 4%, insurers have raised the prices of several products, eliminated some and transformed others. Specifically level-cost universal life insurance saw more than 1 price hike in the last year and will probably continue to see the prices rise in the coming years.
Between the first quarters of 2011 and 2012 premiums for Universal life insurance were up by an average of about 8%. For example, Manulife increased their UL premiums by 12% in June of this year. But UL insurance isn’t the only product that has or will continue to face increases in premiums. Critical Illness policies are becoming less advantageous for insurers while simultaneously necessary for us consumers.
Why those who bought Permanent Insurance should be Happy
For those of you who already have a permanent life insurance policy or critical illness policy, here’s where you give yourself a pat on the back for planning ahead and staying ahead of the price hikes. For those of you who don’t, I would suggest contacting your life insurance broker or making Jack Bendahan your life insurance broker and allowing him to help you secure these insurance policies before prices take a bigger climb.
Some insurers are trying to remain competitive by keeping their increases to a minimum while lowering the interest guarantees on fixed income options. Although very few insurers have refrained from surrendering to the necessary price increases to permanent insurance.
One insurer that to date is still offering low rates on traditional whole life insurance is BMO Insurance. They are very competitive and have great options. The BMO 20 Pay traditional whole life insurance product offers a special feature. After 10 years the death benefit is 50% paid in full.
To get more information on UL, traditional whole life or critical illness insurance products, please contact Jack Bendahan at 905-761-9986 or 416-995-8705 or visit www.lifeman.ca for a free quote.
Posted by Jack Bendahan
