The Insurance Information Institute reported in October that rates for individual term life insurance and permanent life insurance (whole life and universal life) will likely drop by three percent in 2006 This is because people are living longer (what the insurance business calls “mortality improvements) and also because of competitition. One will be able to see these improvements instantly on the lifeinsure.com insurance quotes engine as these changes come about Term life insurance rates have been in a downward trajectory for the last 20 years or so. The biggest rate reductions that we have seen have been for the most healthy people who don’t use tobacco which the life insurance companies call the “best risks”. The lowest rates available in 2005 are more than 50% lower than term life insurance rates from a decade ago.

Insurance companies are given for financial strength ratings as are most financial institutions and many financial instruments such as bonds. What do these ratings measure? Their relative ability to meet their financial obligations. What should you use these ratings for? When comparing insurance companies probably financial strength should be the first thing to look at. Typically insurance company ratings use a letter grade. Each rating service is a little bit different. Moody’s ratings start at Aaa, then go to Aa1, Aa2, Aa3 and then to A1, A2 etc. Standard and Poor’s ratings are AAA, then AA+, AA, AA- then A+ etc. That last one can sometimes be misleading. Years ago an insurance company came out with a big ad that said A+! but when you read the fine print it was an A+ from Standard and Poor’s and in actuality is the 5th rating from the top. A.M. Best rates insurance companies starting with A++ to A+ and then letter grades like school grades from then on (A, A-, B+, B etc.) There are also Weiss Ratings which are also letter grades and Fitch ratings which are similar to the Standard and Poor’s set up. Feel free to call lifeinsure.com to get more information on insurance companies, ratings and life insurance quotes, toll free at 866 691 0100.

Just over half of employees that have had what is called a “major life change” in the last 18 months believe that they have enough life insurance as reported by The National Underwriter. This research was reported Sept. 30, 2005 in a survey of U.S. employees done for MetLife. A major life event was defined as having a baby, becoming a grandparent, buying a home, getting married or engaged, changing jobs or sending a child to college. Of the employees having these major life events, 26% said they had less than three times their annual family salary in life insurance thus many of those who answered the survey are underinsured, according to Met. If this survey is representative, then a substantial number of people are underinsured. 68% of those with children under 18 are concerned about financial security for their family in the event of their death or their spouse’s death, 43% have not yet tried to determine how much life insurance their household needs and 30% of those with life insurance are not sure how much insurance they have. More than 65% of females stated concerns about what premature death would mean to their families, compared with 50% of the males, but female participants on average own life insurance of only 2.2 times their income. Lifeinsure.com can help a consumer find the proper amount of life insurance with competitive quotes instantly. Also, you can read about how much insurance one should have by clicking here.