Best Insurance Life Rate Term

Posted on November 16, 2011 by Admin
Best Insurance Life Rate Term

Best Insurance Life Rate Term

The 54-year-old author of this article got a serious wake-up call when he reviewed the annual premiums table in his Primerica 10-year level term life insurance policy. For the first 10 years of the insurance contract, annual premiums were fixed at a reasonable $355 per $100,000 of term life coverage (all dollar amounts in Canadian currency).

But after the tenth year when the author will reach age 60, premiums spike 280% to $1,346 for 5 years. That spike would be followed by a further 225% hike at age 65 and a 426% increase at age 70. There would be even more severe price rises annually after age 70, with a $4,209 annual bill at age 74.

In total, the annual premiums table showed that the 10-year level premium policy would end up costing the author $48,198 over 20 years.