Why Is the US Life Insurance Witnessing Dwindling Sales?
US life insurance sales took their biggest six-month decline since 1942, reported by LIMRA International. Bloomberg News reports that individual life insurance sales have nose dived 20% in the second quarter of 2009 because savers avoided investments linked to stocks.
This however is a thoroughly separate story in Canada. While sales of universal life policies have dropped 14% compared to the same six-month time frame just a year ago, advisers have been able to use steady term life and whole life policy sales to compensate for those losses. All told, there has only been a 1% decline in annualized payments so far in 2009.
Most financial planning consists of at the bottom line one type of Life Insurance even if the family finance is tighter in the US. Without decent life insurance, an unexpected death can create a financial tsunami in the normal household. Life insurance gives the financial safety net all families require to get from point A to point B.
Of course, that doesn’t mean you can’t still save money on your plan. The hints below show you how to save money, whilst still obtaining the best deal for you.
Refrain from accidental death insurance. This is the main type of policy to be sold by Canadian insurance comapnies to people that don’t really require it. With just over 2% of accidental death policies paying out they make a very profitable profit to the insurance companies but a waste of your hard earned money for you. Accidental death insurance can sometimes cost more than an equivalent term policy.
Be wary of sales people that only sell for one business. The goods they sell belong solely to that business. Insurance companies employing captive agents generally charge higher premiums than the businesses employing independent brokers do. An independant broker can shop around for the best deal and policy for your lifestyle unlike a captive agent who is restricted to their own goods.
Cheap policies can work out more expensive for you. Look at the complete price of your policy, there may be a big price increase later which could work out more expensive in the long haul. Many insurance companies try to lure clients with low start up premiums. Term insurance policies, which offer low start up premiums that increase as the insured ages, are pertinent if used for temporary insurance needs. When arranging insurance policies most brokers use the ‘average’ person. They don’t take alot of time to determine why you’re seeking insurance, or how long you’ll need it.
Find a organization that offers preferred rates. Where it comes to term policies you can find a big difference between the preferred and standard rates. A 40-year-old gentleman, non-smoker would hand over $62.55/month with Equitable Life for standard rates on a $500,000 Term 20 policy. Taking the equivalent details, using the preferred rates this policy would cost nearly $20 less. Click this link to see if you pass for your own preferred policy.
Make sure you are not over insured. Our Needs Analysis Calculator will give you an good barometer of your own insurance needs and help you determine if you are over-insured.
Work with an independent broker. A broker that has access to the whole insurance market is more likely to achieve your requisite than someone who has only got access to their own organization or one or two others.
