March 2003
Quick review of insurance premiums
for 10-year term coverage

Insurance companies, on the basis of industry mortality figures, historically provide lower life insurance premiums for both females and non-smokers. Our survey of the lowest preferred (non-smoker) rates available this month shows that for $250,000 of 10 year term insurance, the premium for a 35 year old female would be $130.00/yr or $11.70/mth. For a male the same age, the premium is higher at $155.00/yr or 13.95/mth. By adding 10 years to the age group, we note the premium jumps to $215/yr or $19.35/mth for a 45 year old female and $262/yr or $22.97/mth for a male.

The premiums rise further for those in the 55 age bracket. A female would pay $400.00/yr or $36.00/mth while a male would have to fork over $572.00/yr or $51.53/mth.

If the amount of the insurance coverage is reduced to $100,000 we note there is a reduction in the premium of approximately $30 to $45 per annum for the 35 year old age group depending on the sex. Premium reductions are also evident for the other age groups reflecting the lower coverage and subsequent risk to the insurer.

One caveat with this type of renewable term insurance is that the renewal premiums (when the original or subsequent term expires) can be dramatically higher. If your need for the insurance coverage will last beyond the original term make sure you are aware of the amount of the renewal premiums so you can make an informed decision at the outset.

It's normal that the cost of insurance will go up as you get older and as the risk to the insurer increases. Your premiums will reflect this change. However, as a backdrop, an insurer's current pricing policies for any age group will reflect its experience with mortality, investment returns and expenses. Since insurers in many cases have recently enjoyed reduced expenses and mortality claims, they have been able to reduce their premiums. If you have a policy that is several years old you may wish to compare the cost of your insurance coverage with what is currently available. It's not unreasonable to find more overall coverage for that same dollar of premium. Pleae Note: Never cancel any insurance policy, for coverage you require, until a replacement policy is in force.

Relevant Links:
- More information on life insurance
- Review our current survey
- Perform an on-line sample life insurance quote