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My Life Insurance Premium Rising

January 7th, 2011 at 01:13 pm

It's been ten years since I first purchased life insurance and it is now time to increase my premium. I have a $250,000 policy. I've been paying $295 per year. It has increased to $675! Yikes. I know I'm older now and much more likely to die (I'm only 38).

Honestly, I probably need more insurance. I probably need to shop around, too. Today, I'm not in the mood. And do you know that I should probably lose 30 plus pounds to even get a better rate? And...I really hate having my blood drawn. I realize not good reasons to avoid the life insurance shopping.

The rate is probably fair. I will renew and pay the new premium when it comes due. I will shop around sometime this year for a new rate. Really.

6 Responses to “My Life Insurance Premium Rising”

  1. Youngmommyof1 Says:

    Sounds like you purchased a term policy thats the only downside is when its time to renew it. I am an Insurance Agent and would say definetely secure a Permenant policy now because in the years the rates will only get worse. Maybe talk to your carrier about spliting do maybe $125K Whole life $125k term the rates for Whole life are always higher but so worth it in the end. Also the other benefit of having whole life is god forbid if you get a terminal illness or your health goes bad in years to come you are locking in todays current health and weight premium rate.

  2. creditcardfree Says:

    @youngmommyof1, there are pluses and minuses to both types of insurance policies. I will be sticking with term insurance and investing what it would cost me to buy whole life. With this strategy, we will at some point be self insured.

    To my readers: Please note that insurance agents make more money on whole life insurance policies than term policies, therefore they push them much more frequently. I would never take financial advice from an insurance agent alone. Look at all the options and ask lots of questions to understand what you are buying.

  3. Petunia 100 Says:

    Absolutely, your goal should be to become self-insured. Once your children are grown, your house is paid for, and you have plenty of savings and investments, you really have no need for life insurance.

  4. MonkeyMama Says:

    We locked in 30-year-term insurance in our 20s. Dirt cheap!

  5. creditcardfree Says:

    @MonkeyMama...I so wish I had locked in 30 years!! I remember talking to another agent at the time about a 20 year policy, but I guess I just didn't know better. Of course, I could have changed at any time. It is one of those things that you don't worry about too much...but with a rate increase it puts it front and center.

  6. Looking Forward Says:

    I need to get LI on DH. I keep putting it off Frown It WILL happen in 2011! Thanks for the good reminder..

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