Life Insurance Rates Going Up?

Greg Felton, CLU, ChFC, Sales Director
gfelton@nsslife.org

Say it isn’t so, how could life insurance rates go up? Believe it or not we will be rolling out new rates this month and they are based on the latest mortality table (2017 CSO). Generally speaking, the rates for middle-aged or older people has improved as this group continues to show gains in mortality. This decrease in cost can be attributed to the fact that older people are living longer. This may be attributed to greater access to health care, new advanced/experimental treatments, better prescriptions and enhanced physical therapy. Also, seniors are more active, making better food choices, exercising and overall enjoying a better quality of life. All of this is good news.

On the other side of the coin, the rates for younger people, especially those under the age of 25, are going to increase. Part of this increase is due to the opioid crisis which has affected many of our young people. However, we can also lay blame to some other factors including; other drug use, vaping, smoking, poor driving habits of young people, suicides, and a greater propensity for risky behaviors.

Another element in the pricing risk of life insurance is the current low interest rate environment we are operating in. An insurance company cannot make much money on premium deposits when the fed fund rate is around 2.50%. All of these factors plus a few more are put together to create the 2017 table. Every insurance company in the country has to use this new table starting January 1, 2020.

Here is the important point in this article. It doesn’t really matter how much the insurance costs? It might be a few dollars more or less over time. What matters is what life insurance does. It provides people with peace of mind, security and the knowledge that their heirs will be taken care of if they aren’t here to do it themselves. Life insurance may very well be the greatest financial invention ever devised.

NSS offers some of the best rates and plans that money can buy. Call your local representative or Joe Elliott in the Home Office for more information. Let us help you and your family build a secure future together.