Your Insurance Matters: Are you paying too much?

Your Insurance Matters
Are you paying too much?
By Shirley R. Lamdan, CLU

Are you paying too much for life insurance? The Insurance Information Institute ( reveals that term life insurance rates are 50% lower than ten years ago. Universal Life and Whole Life also cost less.
Actually, this isn't just a recent event. An article in The Journal of Risk and Insurance observed this price movement as long ago as 1971. Longer life spans and fierce competition are primary reasons for these steep price declines.
Have you thought about taking advantage of these savings? It could be more cost-effective for you to get new life insurance today. If you already have life insurance, it's definitely worth your time to compare what you're now paying with up-to-date rates.
Your independent life insurance professional will be happy to run quotes from a wide variety of companies.
You don't have to pay high prices for your life insurance program anymore. These older and higher-cost life plans must be a marvelous "sweet spot" for the industry! But you don't have to help "pad" their profits!
Contact your independent insurance agent for current life insurance quotes. You could save money now and into the future as well.
What about long-term care insurance? How can you keep that cost down and increase your chances of being accepted?
The Insurance Information Institute says it's best to purchase your long-term care plan before age 60.
There are two main reasons.
The younger you apply, the better chance that you'll be accepted. If you wait until your 50's, there is a higher probability you could be rejected. Waiting until your 60's could result in an even greater chance (20%) of rejection. And applying in your 70's could present a 40% chance of not being accepted.
And, when it comes to costs, the younger you apply, the lower the premium will be.
Are your beneficiary choices up-to-date?
As your life changes, your beneficiary designations might also need changing. Over time, some people may decide to name a charity to receive their life insurance proceeds. The birth of a child, a divorce, a marriage, and other life events can influence the selection of a beneficiary.
Choosing a beneficiary and making sure the choice is updated are part of owning life insurance.
The Insurance Information Institute stresses the importance of naming your beneficiaries. If you just write "spouse" or "husband" or "wife" without the person's actual name, all kinds of problems and confusion could result. It's also a good idea to include the person's social security number (even if the insurance company doesn't request this detail).
These specifics, the actual name and the social security number, could help prevent disputes. It might also help the insurer locate a beneficiary.
If beneficiaries can't be located or if no beneficiary is designated, the life insurance proceeds will go to your estate. Then a court steps in. There could be delays and there definitely will be costs associated with probate. This will reduce the amount left for your heirs.
Stay on top of your insurance matters with your independent insurance professional!

Since 1982, Shirley R. Lamdan, CLU, of Hagerstown, MD, has been providing independent retirement and insurance services to individuals, corporations, and non-profits. Call her at 301-791-9427 or 800-628-3449. Her e-mail is The website is