Triple-X hits and the term insurance market takes a negative turn
Nicholasville, KY (PRWEB) January 7, 2000
Although only a small number of states have adopted a new NAIC model regulation called
Triple-X, the impact is being felt across the entire nation. Life companies, required by any one state to comply with the rule, are forced to alter their term products for all other states.
Compulife Software, Inc., the nation's leading provider of term insurance comparison software, has just updated its 150+ company database with the new Triple-X products from over 30 companies.
The new rates are available to consumers at Compulife's public term comparison website: www. term4sale. com
The companies who have made product changes are among the most competitive in the market. Compulife president Bob Barney says that the changes are just what he had been expecting. Barney, who mounted a four year letter writing campaign opposing the
Regulation, repeatedly warned each state's insurance commissioner of the negative implications for consumers. As a result of the regulation, consumers are now faced with tough choices when buying 15, 20, 25 or 30 year level term products.
Barney said, "Before Triple-X consumers had a relatively simple decision because most of the competitive level term policies
Guaranteed their premiums for the initial level period. Now consumers are faced with a dilemma, whether to pay more to get
The full premium guarantee or to pay less and take the chance that the life company can be trusted not to raise rates during
The latter part of the level premium period."
Compulife gave some examples of the kind of premium changes that
Have occurred:
30 Year Term - $250,000 Male Non-Smoker (very good health)
Age Best gtd premium Best gtd premium ** Best NON-gtd
pre-Triple-X (1999) post-Triple-X (2000) post-Triple-X
30 $192.50 $295.00 ** $177.50
40 $335.00 $492.50 ** $335.00
50 $792.50 $1,192.50 $795.00
** Note: As of January 3rd two of the most competitive companies had not yet introduced new Triple-X products. Compulife was advised that the companies plan to offer their older products
Into the new year. The companies are First Colony and John Hancock Variable. Their older, more competitive guaranteed rates
Are in the www. term4sale. com database and automatically included in comparisons. Barney urges consumers to act quickly.
Triple-X has had virtually no impact on shorter level term plans such as 5 or 10 year level term. The longer the initial level period, the greater the price increases. Age also affects the amount of price increases for guaranteed policies. The older the insurance buyer, the greater the price increase.
Barney has published a special editorial at the www. term4sale. com website. He hopes to assist consumers in sorting out their
Guarantee versus non-guarantee options.
