Do Newer Life Insurance Policies Offer Better Features?
It’s odd to call insurance policies “products” but that’s what they are – they’re packaged, offer different options for different buyers, and the same ones don’t sit on the shelf for long. Like any product, they change, they improve, they offer new features, they drop old features that aren’t working anymore.
You probably own an early model of life insurance and we’re nearly certain we can find you a life insurance system 2.0 with extended warranty and attractive factory benefits. Very often, new insurance products make the old ones look creaky by comparison. New policies often:
- Offer more guarantees.
- Offer better tax protection – and better tax benefits when you retire.
- Offer the same coverage for less. In fact, the cost of life insurance has fallen 30% over the last 10 years.
- Class your medical condition more favorably; medical underwriting has changed dramatically.
- Offer better loan terms if you borrow against your policy’s cash value.
- Offer lower surrender values: the amount you have to pay if you cancel the policy.
- Wrap new benefits into the policy like long-term care provisions.
- Insure you for longer, covering you to age 95, 100 or even beyond.
- Change the funding terms to accommodate today’s lower interest rates, making your policy more reliable and less likely to lapse unexpectedly.
Kick the tires, trade in your old policy and get more mileage out of a new one. How might your model be different – and better?