The dirty little secret here is that many life insurance companies are looking for excuses to get out of the business altogether. Premiums have plummeted as the industry has gotten more competitive, and years of low interest rates have made it difficult for them to maintain investment portfolios that can support their actuarial models.
not really. Having worked in the industry for years, I can tell you that they are pretty savvy in investing in long term real estate (mostly commercial) and have done very well.
Life insurance, contrary to p/c (property and casualty) does not attempt to deny very many claims. If you are dead, then well.... you are dead. As far as the collapse of premiums, that is due almost entirely to longevity stats. While that means term policies for 34 year olds are just stupid cheap, it ALSO means that more 60-70 year olds are still alive and active and in need of a policy.
I “retired” 4 years ago, but due to family issues (a grandson with severe needs), I find that I am concerned that my savings may not be enough to fund a trust for him if I die after 70. Up until 70, I have a substantive policy that will pay and be able to fund any needs my wife has as well as my grandson’s needs. It is term, though and I will probably need a quarter of a million dollar policy (the most they will sell you at age 70), which will cost me more than the current one I have, which has a death benefit several multiples higher than the 250K. I am just one of the blue haired crowd who needs coverage at a late date, and those policies are MUCH more lucrative.
I sold this stuff for 20 years and had my own company for 15.
I actually LIKE what JHancock is doing. It is private and free market. If you don’t want to give them your private info, guess what? YOU DON’T HAVE TO. You can go with Prudential or NY Life or whoever you wish. However, if you are like me and don’t smoke, overdrink, do drugs, take meds for hbp or cholesterol and are fit/healthy, DO YOU WANT YOUR RATES TO BE TAILOR MADE TO DISCOUNT FOR YOUR LIFESTYLE? Only an idiot would say no.
“The dirty little secret here is that many life insurance companies are looking for excuses to get out of the business altogether. “
i don’t know why they need “excuses” to exit a business that’s not making money ... there are no regulators that i’m aware of ordering insurance companies to sell life insurance ...