Guaranteed Life
Insurance Rates

Guaranteed life insurance rates are an important part of your life insurance policy. Some insurance companies have shortened the guaranteed period for their rates. Still, there are plenty of polices which have have rates just as low, but also have guaranteed life insuranc rates for the duration of the term period.

The biggest factors driving the fate of guaranteed life insurance rates is a proposal passed by most states' life insurance commissioners called Regulation Triple X. The bottom line is that life insurance companies cut rates to gain market share, with the promise of fatter future margins. When Triple-X was implemented, rates stayed low, but long term rate guarantees were removed.

Triple-X

Twenty and thirty year guaranteed life insurance rates (i.e. where the premiums are guaranteed for the ten or twenty year term) have become more expensive because of Guideline XXX, or "Triple-X". This guideline, which was pushed by the National Association of Insurance Commissioners (NAIC), requires insurance companies to substantially boost the amount of cash reserves for any term insurance premiums guaranteed beyond 5 years.

According to Bob Barney, President of Compulife® Software, Inc., "Triple-X will strengthen the position of life companies at the expense of the consumer, by transferring the risk of pricing errors from the life company to the consumer." Mr. Barney led an aggressive campaign against this regulation on the grounds that it was anti-consumer and unnecessary.

In short

Triple-X caused some companies to shorten the period for their guaranteed life insurance rates. Consult with an independent agent for further clarification and to decide whether you should seek the lowest rate or the longest guarantee. But you can still take advantage of the low rates.

Then contact an independent agent to determine the rates for which you qualify, and to select the best insurance company, based on your health and lifestyle profile. Make sure to aske for guaranteed life insurance rates, or at least find out if there is a price difference to get them.