The various life insurance carriers have different niches that they focus their attention on.   Some carriers will focus their efforts on being ultra competitive with individuals that are over 50 looking for term insurance.   Other carriers, will not be competitive with over 50 and will be mostly focused on competing with individuals in their 20′s and 30′s.

Some of the carriers don’t try and compete with the other companies on the cheapest term rates.   These type of carriers may put more of their efforts in having great permanent products.    A good example, would be Mass Mutual Life Insurance Company.   They are very highly rated with a AAA rating, but are not very competitive with their term insurance rates.   On the other hand they have extraordinary financial strength to back up their promise to pay and they have some of the best cash value plans on the market.   Their dividend paying whole life insurance is at the top of the industry.   If you are looking for a inexpensive term plan than they are the wrong carrier, but if you want great whole life, than they are perfect.

It is important to find a company that is good in the areas that you want for yourself.   If financial strength of the company is very important to you, than we are looking at one set of companies.   If you want a company that has an A rating or better and want the cheapest term possible, than that is a completely different company.   We understand the niches and based upon what you want, we can help you find the right company.

Since term life insurance is basically a commodity the life insurance carriers have had to make it very affordable to compete.   The ability to keep it cheap is centered around a few factors.   One is that the insurance companies rarely ever pay a death claim on a term policy.   Typically, less than two percent of people with term policies ever make a claim.    Since so few people actually die, it is a big money maker for the life insurance company.    It is a win for the consumer because they were able to get a good amount of coverage for a very reasonable price.

The other big factor in keeping the premiums down is that fact that life expectancy has increased.   People are living longer and that contributes to being able to offer reasonable rates to an aging population.   Over the last few years rates have come down to the lowest they have ever been.  In the last couple years, we have seen some companies have modest price increases due to their overall portfolio taking a hit financially.  To make up for their losses elsewhere they had to charge a little bit more for life coverage.

Another main reason, that rates are so cheap is the amount of competition.   With so many carriers offering life insurance at competitive rates, it is imperative to be in that ballpark to be successful selling term.  Some carriers are not trying to compete with their term products as their focus might be on high quality permanent plans.

Jacksonville, Florida — Most consumers understand that term life insurance is a very basic form of insurance that offers coverage over a certain period of time. These specific periods can be in 10, 15, 20, or 30 year increments, but this can really vary on carrier or product.  You can make premium payments monthly, quarterly or yearly.

Once your policy term period ends, no premium payments are made because you are now out of coverage and no death benefit (American General Life Insurance) will be paid in the event of someone passing. If you wish to maintain your policy coverage after the term period ends than you must either convert that policy into a permanent policy or purchase another term life insurance policy for another a specified period of time. Term life insurance is often viewed as one of the cheapest ways to purchase coverage.

Many consumers are trained to purchase term insurance policies because they are less expensive and invest the rest in the stock market. If you are looking for a safe way to earn interest on your money you may want to look at a whole life policy rather than a term.  Either way you will always get some payout on death benefit, while under a term life insurance policy, the possibility always exists that the policyholder will outlive their policy, and lose all of the money the paid in. A great deal of statistics show that payments that are made under a term life insurance policy are lost, which makes it much easier for life insurance carriers to offer this coverage at a cheaper price.

Article Source:  Life Insurance Article