Think about the unthinkable: Protect your family with life insurance

If you've been thinking about buying life insurance, now is the time because term life rates are on the rise.  

"After years of rate decreases, these increases were inevitable and there will likely be more," says Byron Udell, founder and chief executive officer of AccuQuote. "There are many compelling reasons for the increases: lower bottom line profitability, increased reserving requirements, increasing reinsurance costs, poor investment results, and increased cost of capital."

AccuQuote maintains a database of more than a thousand life insurance products offered by in excess of 125 life insurance companies and continuously monitors the rates of these carriers. Over the past few months, the company has seen a dramatic price increase among many of the most competitive carriers, including Banner Life, Reliastar/ING and Prudential, and expects to see this trend continue throughout 2009.

"The message to consumers is clear: now is the time to buy term life insurance," says Udell.  "Take advantage of today's historically low term rates before it's too late."  

Over the past year, the precipitous decline in stock prices, along with the sharp decline in real estate values, has negatively affected the net worth of many Americans. As a result, Udell suggest, life insurance plays an even more important role in a family's financial plan. Why?  Because if the breadwinners of these families were to die today, their loved ones would be a lot worse off than if these declines in net worth had not occurred.  

Experts suggest that if you have dependent children, a spouse or anyone else who would suffer financially if you die, then you need a life insurance policy. However, before purchasing life insurance the experts at AccuQuote.com suggest you ask yourself the following questions:

• How much life insurance do I need?
• What kind should of life insurance should I buy -- term life insurance or permanent life insurance?

Udell says a good rule of thumb is to take out a policy that would provide your family with at least 5 to 10 times your annual salary; though depending on their level of expenses, some families may need more and some may need less. AccuQuote's Web site has a "Needs Calculator" that can be used to give you an idea of what the proper amount would be, but Udell says it's best to talk with a licensed agent because an agent can really dive deep into your financial situation.

As for the type of life insurance you should buy, Udell recommends purchasing a life insurance policy that you can afford to keep paying for throughout the years. He prefers term life insurance for most people because it is affordable and because people are less likely to drop term life insurance.  

"Permanent life insurance is on average 3 times more expensive than a term life insurance policy. We're comparing hundreds to thousands of dollars per year. Most American's just don't have that kind of money."


Visit AccuQuote to learn more today. AccuQuote’s experience agents will answer any questions you have and provide you with free term life insurance quotes from several leading insurance companies. Copyright © ARAnet, Inc.