Life Insurance Cost

Life Insurance Rates to Rise in the Years Ahead

August 10, 2010 | Featured, Rates | Wayne Rodriguez | No Comments

2010 was a much improved year for America’s insurance industry after suffering through 2009, which was a terrible year. During the last few years, write offs in the insurance industry occurred in record amounts. Overall this helped to push insurance rates down. Tough competition and company consolidations were also prevalent, which helps reduce rates as well across the board in order to attract and keep customers. It appears at this point that the worst is behind us. Over the next several years consumers can expect to see life insurance rates rise along with other costs.

Unfortunately during tough economic times life insurance is considered a luxury that many people will go without. With the economy stabilizing in recent times, many people have renewed their life insurance. This corresponds with life insurance rates rising over the next several years.

Should Life Insurance be Used as a Retirement Savings Plan?

August 2, 2010 | Featured, Term Life | Wayne Rodriguez | No Comments

We received this question from one of our readers. I am 33 years old and make approximately $150,000 per year. I need to plan for my retirement, and I’m starting from scratch. Someone who is close to me would like to sell me a life insurance policy that features a cash value as a way for me to save. Is this my best option?

Well my first question is what to you mean by someone close to you? Are you talking about a co-worker, acquaintance, friend or relative? Whoever this person is, my first suggestion is that you distance yourself, at least in terms of your finances, with this person.

The reason for this is because when you are trying to save and invest for your retirement, your starting point shouldn’t be life insurance. In terms of your options, life insurance should be way down on your priority list, if at all.