Living Longer And Life Insurance Rates

Back in the "olden days" was an unusual feat when someone has experienced the "old age" of 70 or 80. These days, with all of our advances in modern medicine, treatment and our lifestyle healthier, more and more people live longer and enjoy good health well into their golden years. Studies show that more than 49000 people nationally are more than 100 years, up dramatically from just a decade ago. According to the census data of the United States, the number of people living to 100 or beyond to double every decade, and the fastest population growth in the United States is in these days people who are 85 and older. Ageing and many experts say every day I am surprised by the number of people who are able to live without assistance even in their 90s.

What does it have to do with your life insurance rates? Well, not only prolongs life and good health good news for America senior from a perspective of life, it is also good news from a perspective of life insurance. Insurance companies are adopting new actuarial tables that incorporate new levels of mortality within the next 5 or 6 years, many first. Actuarials and mortality tables are used by life insurance companies to calculate the probability of death by a certain age. In other words, they say the life insurance companies how long you expect to live, on average, based on your age and sex.

For the first time in over 20 years, the American Academy of Actuaries has revised the table to reflect America's tendency to live longer. The new tables to increase the maximum (theoretical), the life expectancy of 120 years, not because actuaries actually think many people will reach the age of 120, but because this is the highest absolute age it is theoretically possible for a person to achieve these days.

According to the US Centers for Disease Control, in 2000, the average life expectancy for American males was 74, until four years from 1980 (when the previous tables were written). For American females, the average life expectancy in 2000 was 79 years, up to two years from 1980 tables. In addition, the annual improvement of male mortality in the general population of the United States is improved by 2 percent in the age group 55-59, and improved to 1.2 per cent for women the same age group.

You have more means that the mortality and expense charges to be paid for the coverage would be lower, which should, in turn, the lower your premiums. Some insurance companies are saying that the new tables will allow them to abandon their rates by as much as 30 percent, once they are adopted. Insurance Companies benefiting from their longer life spans because consumers do not have to set aside as much to cover the payoff death benefit, so that savings should be passed on to consumers. Many estimate that most insurance companies will set aside about 15 percent less than is currently up to cover death benefits.

While life insurance companies have until 2009 to implement the new actuarial tables, many will do it as soon as possible. This means that it is particularly important to examine your policy frequently, and compare the rates of different companies to see who has approved the new tables and are therefore able to offer lower prices.

By Abbey Wagner, InsWeb


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