Like any other market in today’s rapidly-changing world, the term life insurance market is on the move. Learn about what kinds of new and innovative products life insurance companies are offering today.
Like other industries, the term life insurance industry is constantly finding new ways to meet consumers’ needs. While there are still the basic sorts of term life insurance offerings out there on the market, many life insurance companies are becoming more and more innovative as they struggle to create exactly what customers want to see.
This has led to a number of new and interesting trends in the life insurance marketplace, many of which may appeal to you. From new options for payouts to things like combined insurance, life insurance companies have plenty of interesting choices for you to consider.
Take, for example, payout options. As you know, one of the sources of revenue for a life insurance company is the interest that they make on accumulated funds. The longer the life insurance company holds onto its premiums, the more money it makes. If the life insurance company can hold onto a portion of those funds for a longer period of time, it will not only increase the company’s profits but it may be able to increase your policy’s benefits.
Instead of paying out your life insurance policy as a single lump sum, for example, it may offer death benefits as an annuity. This annuity will pay out the death benefit over time. In the long run, your beneficiaries will receive a larger payment than if they were to take it all at once.
Of course, traditional one-time lump sum payments are still an option. Many customers still want their policy to pay the full benefit on their death. They don’t see their life insurance policy as an investment for their beneficiaries, but rather as a safety net should anything happen to them.
Another rising trend in the term life insurance industry is that more and more companies are finding ways to offer products to older customers. As life expectancy increases, the older population becomes more and more of a potential market. It also becomes much more feasible to offer term life insurance products to older customers. While it may not have made much financial sense for a term life insurance company to offer products to someone over the age of 60 just a few decades ago, today it is much more likely that the individual will live into their 80s and beyond.
Many term life insurance companies are now bundling their products with other insurance products, too. For example, some companies offer private medical insurance, long-term care insurance as well as term life insurance. By combining products in this way, the company can create a synergy that increases their bottom line but also the customer’s security and well-being.