Will it happen right away or gradually throughout the year if so? I was ready to buy our policies a couple of weeks ago until I saw a large article published about the probability of this happening…
It depends.
As new actuarial tables are developed, new mortality and expense calculations are developed. If an insurance company creates a new insurance policy that incorporates these new (lower) mortality expenses, then the premiums of the new product will be lower.
But let’s say an insurance company wants to create such a policy on January 1, 2008 and that company is going to do business in all fifty states. The insurance company will have to get the product approved by fifty different state department of insurance. This process may take more than a year.
Here is the bottom line: if you need [term] insurance to protect your family, buy it today. Then keep your eye out for a policy to replace it at a later date. Don’t use the possibility of a lower rate, at some possible day in the future as an excuse to delay getting protection for your family.
It depends.
As new actuarial tables are developed, new mortality and expense calculations are developed. If an insurance company creates a new insurance policy that incorporates these new (lower) mortality expenses, then the premiums of the new product will be lower.
But let’s say an insurance company wants to create such a policy on January 1, 2008 and that company is going to do business in all fifty states. The insurance company will have to get the product approved by fifty different state department of insurance. This process may take more than a year.
Here is the bottom line: if you need [term] insurance to protect your family, buy it today. Then keep your eye out for a policy to replace it at a later date. Don’t use the possibility of a lower rate, at some possible day in the future as an excuse to delay getting protection for your family.
References :