Debunking Life Insurance Myths
It may come as a shock, but premium rates for individual life insurance – both term and permanent – are
expected to drop by 4% in 2007, due in part to longer life expectancies and increased competition.1 In fact, premiums
have fallen in 10 of the last 14 years.2
several other misconceptions about the affordability and availability of life insurance that might surprise you.
"There's no need to pay the higher premiums for permanent life
insurance. I'll get a cheaper term life policy." It is important
to understand that when it comes to life insurance, you get what you pay for. With the additional cost of permanent life insurance,
you receive many attractive benefits not offered by term life policies. For example, you have lifetime protection as long
as premiums are kept current. Permanent life policies have the potential to build cash value, which can accumulate tax-free
as long as the policies remain in force. Over time, permanent insurance may be even more economical than term because the
premiums typically do not increase as you age.
life insurance is too risky at my age." Some people want a life insurance
product with an investment feature in addition to the death benefit. Variable life insurance allows you to direct a portion
of your premium into various investment options, and any earnings accumulate tax deferred unless you surrender the policy.
With variable life insurance, you assume investment risk. Some policies are available with guarantee features at an additional
Variable life insurance is sold only by prospectus.
Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which
contains this and other information about the investment company, can be obtained from your financial professional. Be sure
to read the prospectus carefully before deciding whether to invest.
The cost and availability of life insurance depend on factors such as age, health,
and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent
to make sure that you are insurable by having the policy approved.
The life insurance industry has changed to offer increasingly competitive products. Call today to see whether some
of these newer policies might change your perceptions of the life insurance industry.
1) Insurance Information Institute, September 19, 2006
2) Insurance Information
Institute, October 5, 2005, and September 19, 2006