Financial Planning Blog

After a long period of trending downward, term life insurance rates have started to head back up. According to a recent article in the Wall Street Journal, insurers have been increasing premiums an average of 5-15% since the beginning of 2009. The reason given for the increases are lower returns on investment (sound familiar?) and higher costs in maintaining required cash reserves.

This isn't good news if you are currently in the market for term life coverage. However, these modest increases should not keep anyone from obtaining the coverage they need for their family. It may be incentive, however, to hurry up and get shopping. Apparently, not all companies have raised their rates, yet.

Is this just a temporary setback, or the start of a new trend? Who knows--but even with these increases term life insurance (not whole life, permanent life, universal life or other high priced, high commission life insurance products) is a good deal. Just look at how term life insurance rates have come down over the last ten years and you'll feel better, even if you end up paying a bit more than you would have in 2008.