Is it Time to Invest in Life Insurance?
Life Insurance products may be changing in the near future.
There is one theme that I keep hearing when life insurance carrier wholesalers visit me. That is that Life Insurance Policies as we know them today may not be around in a few years. The insurance industries landscape may look very different. With regulatory pressures and market conditions it seems these changes are inevitable.
We have already seen some significant changes in policies because of the low interest rate environment. We have seen higher premiums, the removal of some products and we have even seen Standard Life exit the life insurance industry all together. One of Standard Life’s reasons is that sales were down due to the increased price of their Universal Life Product. More recently we have seen RBC Insurance stop selling some popular life insurance products.
Life Insurance guarantees that we see today for permanent life insurance policies may not be the same in the near future. We may for example find that the lifetime guarantee’s that we have become accustom to with such products as Whole Life and Universal Life may not carry the same life time guarantees. For example insurers may change the contract to allow them to adjust the premium on periodic basis to account for things such as higher costs, inflation etc., this is something that most insures are looking at (adjustable products).
So things have changed recently but right now might be the last time to lock in guaranteed life insurance as is available today. Take a look at Term 100, Whole Life and Universal Life insurance rates and get covered today!
About the Author
Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.