Cheap term life insurance is not an oxymoron. In the past 5-10 years term life insurance rates have dropped dramatically. Why is this?

 

It is well documented that the price transparency that the Internet brings in allowing consumers to view competing companies prices has dramatically decreased the cost of term life insurance rates over the past 10 years. According to Kerry Hannon in the July 5, 1999 issue of Business Week, “What costs less than half what it did two years ago? Term life insurance. Term-insurance buyers have been enjoying some of the lowest rates in history thanks to increased competition and the ability to buy policies over the Internet or the phone without going through an agent.”

Even as far back as 1999 the affects of the price transparency of the Internet on the life insurance company’s rate was clearly evident. What was once a matter of thumbing through the yellow pages and listening to an agent’s spiel over a dusty paper proposal is now a matter of a few mouse clicks away and instant rates from multiple insurance companies can be compared side by side online.

If an insurance company cannot compete on price alone or differentiate its product or company from the commoditized term life insurance arena then they do not stand a chance in this hyper competitive and highly transparent insurance environment. There are many top notch insurance companies with stellar AM Best ratings (a rating used to measure the financial strength of insurance companies) and affordable term life insurance product offerings. Be a discriminating and smart consumer and be sure and do your research. Take advantage of the price transparency of the Internet to find cheap term life insurance!