The cost of term life insurance is decreasing but like most other cost adjustments in this case too, the companies providing term life insurance, are shortening the guarantee period for their lowest rates. The life insurance companies are modifying the previous rates because they wanted to capture a good share of the market but at the same time they are compelled to reduce the long term guarantees or actually remove the long term guarantee.
Now, the rates for longer terms like twenty or thirty years, (where the premiums are guaranteed for twenty or thirty year terms) are more expensive because of some new guidelines by the regulatory authority. Again these guidelines are given to make sure that life insurance companies, which are providing long term insurance are boosting the amount of their reserved capital for any term insurance premiums beyond five years.
The regulatory authority holds that some companies are not holding enough money to pay future claims if new sales dries up.
So that, these insurance companies are going to strengthen their economic position with the policy-holder’s money. One important thing that should be mentioned here is that policies bought earlier are not going to be affected by these regulations, they are applicable to the new policies issued after the new regulation has passed.
Now, availability of low cost term life insurance is still possible but the providers will have to decrease the price guarantee period. It is notable that if a customer buys a 20 year term life insurance with a ten year guarantee at a lower premium, then in the 11th year the premium goes up. But at that time one would not get a cheaper policy because he is ten years older then.
So, before the regulations change, it is better to purchase a term life insurance policy with the desired price guarantee term.
Some related companies are:
California Life Insurance
Prudential Life Insurance
ICICI Pru Life Insurance
Max New York Life