Has the price of American life insurance increased?

In June 2021, there was an inflation rate of 6% across the United States, which was the first time since 5 and the highest level in the United States in the past 2008 years.

Some life insurance products that were updated at the end of the year showed a trend of doubling premiums.We don’t need to ask,As the price of eggs rises and the price of gasoline rises, has life insurance also “increased the price”?

Review the history of the economic stimulus bill

In April 2021, the American Life Insurance Guide Network releasedNews report, Pointed out the amendments and impacts of the 7702 Clause by Congress.Under the influence of the new regulations, life insurance policies allow policyholders or investors to deposit more premium funds than before.

Is this a government-guided "price increase"?Or is it a major benefit for policyholders?

Under the adjusted framework of related laws and regulations of 7702, eachLarge life insurance groupBefore the end of 2021, newLife Insurance Products.American Life Insurance GuideWith the assistance of community brokerage agencies, the popular Whole Life (Savings Participating Insurance) And Indexed Life (Index Universal Insurance) Two representative brand products of these two types of insurances, using the GuildeLine premium model, make a comparison statement for readers to compare and reference.

1. Comparison of Whole Life Participating Insurance

(p1. 12Pay-100 million dividend policy Whole Life/2021.10)

The picture above (p1) is an old Whole Life (Chinese calledSavings Participating Insurance) Life insurance products will be removed from the shelves at the end of 2021.

The 45-year-old male policyholder chose a 12-year payment period. In 12 years, the red vertical bar shows that the insured personneedDeposit premium$50 USD.The claim insured amount is $100 million.

The oval frame in the lower left corner points out that 20 years later, when the insured is 65 years old, this savings and dividend insurance policy保证can haveAn account balance of $49.

The oval box on the right indicates that after 20 years, the predicted cash value of the policy account$80 USD.

(p2. 10Pay-100 million dividend policy Whole Life/2021.12)

The picture above (p2) is a new Whole Life (Chinese calledSavings Participating Insurance) Life insurance products will be launched in December 2021.

The 45-year-old male policyholder chose a 10-year payment period. In 10 years, the red vertical bar shows that the insured personneedDeposit premium$71 USD.The claim insured amount is $100 million.

The oval frame in the lower left corner points out that 20 years later, when the insured is 65 years old, this savings and dividend insurance policy保证can haveAn account balance of $69.

The oval box on the right indicates that after 20 years, the predicted cash value of the policy account$127 USD.

2. IUL Index Insurance Comparison

(p3. 15Pay-100 million index policy IUL/2021.9)

The picture above (p3) is a7702 regulationsThe exponential life insurance product of China has been removed from the shelves.

The 45-year-old male policyholder chose a 15-year payment period.The red vertical bars show that in 15 years, the policyholders have accumulated premiums$22 USD.The lifetime insurance coverage is $100 million.

The oval box on the right indicates that after 20 years, the predicted cash value of the policy account$36 USD.

(p4. 15Pay-100 million index policy IUL/2021.11)

The picture above (p4) is a copy ofNew 7702 RegulationsOf exponential life insurance products.

The 45-year-old male policyholder also has a 15-year payment period.The red vertical bars show that in 15 years, the policyholders have accumulated premiums$33, and the lifetime claim coverage is $8015 million.

The oval box on the right indicates that after 20 years, the predicted cash value of the policy account$59 USD.

Article Summary: Our View

If you are looking for personal protection, then according to the thinking of buying consumer goods, the cost of life insurance death claims has increased significantly.

If you are looking for asset management, then in accordance with the logic of buying assets, the new life insurance product gives us a higher capital entry limit, which means a relatively higher cash value leverage.

Different family income situations, different life stage needs, and different levels of understanding of money, how to treat the adjustment of life insurance premiums due to regulatory adjustments, and how to treat the benefits between premium input and mid- to long-term output The gains and losses are different.

In the field of life insurance, what we need to insist on is thatThe real problem faced by policyholders has never been the question of "buy it or not," but the question of whether they can find an insurance solution that truly matches their family wealth and knowledge level.

In the American Life Insurance Guide Community’s "Comparison and evaluation of millions of insurance premium prices"In this article, we have repeatedly pointed out that the United States is a fully competitive mature market economy country. The development of a century-long industry field has brought us a great rich, even too rich choice.

The real dilemma faced by policyholders is not too few choices, but too noisy market voices, too many choices, and lack of professional guidance and comprehensive education.

A life insurance financial advisor with more than 30 years of experience, once askedAmerican Life Insurance Guide CommunityFrankly, under the influence of various social media marketing and FOMO emotions, some insured families with excellent conditions have hurriedly made a decision, thus losing the opportunity to contact professional financial insurance institutions and design solutions that are more beneficial to them.

And in recent years1035ExchangePolicyTrade-InThe number of cases has increased significantly, and the TLT community has also felt that such Chinese high-net-worth families have begun a journey of seeking more comprehensive life insurance and financial management knowledge education, and have begun to re-examine whether the American life insurance policies in their hands are reasonable.

Seek professional field, with fiduciary responsibilityProfessional life insurance personnelThe assistance is the consistent aim of the American Life Insurance Guide Network.In this kind of insurance experience, we can not only immediately avoid the FOMO urgency that the sales staff continuously output to the policyholders, and pursue the Peace of Mind that insurance brings us, but also in a medium and long-term insurance policy. In this stage, through cooperation with professionals, actively respond to the ever-changing market interest rate environment and regulations and policies, and safeguard their long-term interests.(End of the article)

(>>>Related reading:What are the 7702 insurance regulations?What are the benefits for me after the modification?)

*American Life Insurance Guide is a publisher of content. The content of this article is not an insurance recommendation, description, or offer. The article is only for general public education.