Totally boring life insurance observation

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Photo courtesy of willie_901

I just went through a life insurance reevaluation with Excel, some online tools and a rep at USAA, my financial services company (which I highly recommend - they rock).

One interesting thing I discovered is that even if I wasn't going to up my coverage, which I'm doing in response to a new baby and living in Southen California, I should have "refinanced" my coverage anyway.

About a year ago insurance companies changed their actuarial forecasts for life expectancies. People are living longer, so people are dying later. So the cost of term life insurance has gone down. Policies taken out before the change don't typically change their rates. New policies can be bought that cover you starting immediately (and hence covering you for longer than previous policies started earlier) for less, given the same coverage level and no changes in health, at least in my age bracket.

From the totally boring, but useful files

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