It's a new year, and with that comes new resolutions. For most people, these resolutions will include at least something related to financial planning. But do your resolutions include covering yourself and your family with affordable term life insurance? If you don't have a policy already, or even if you already do, it is important to review your life insurance needs. Unfortunately, most people will find themselves lacking sufficient life insurance, and may be reassured to find out that this part of their financial planning can be one of the easiest and least costly to remedy.

The good thing about term life insurance, besides its affordability, is that you can choose a policy that matches your needs at this particular phase in your life, and then you can revisit your needs whenever the term you have chosen is up.

We All Need Life Insurance - But How Much?
Different stages of life require different coverage levels. Look at your life in this new year; did you have any life changing events in 2003 that may require a new level of coverage in 2004 and beyond? Did you get married, have kids, purchase a house, get divorced, retire, get a sizable promotion or new job (or any other financial windfall)? These are just some of the life events that usually require a new level of life insurance coverage.

Studies show that over 25 percent of American households lack any member with life insurance. And the approximately three quarters of us who have life insurance do not have adequate coverage levels for the stage of life we are in. And many may not realize that term life insurance has become so affordable. There is heavy competition these days among insurers wanting to cover you, and that translates into affordable, competitive rates if you do a little comparison shopping.

Seniors: You Too Can Find Affordable Life Insurance
Another point to clarify is that while some may realize they can afford life insurance while they are young, many may not realize that older Americans can usually find affordable term life insurance as well. Experts say that in the last couple of years, more and more seniors have been buying term life insurance. Let's look at one example; that of a healthy, 60 year old male looking to buy a 10 year, $100,000 policy; this senior may be able to find a policy for as low as $34.02 a month. Hardly the hundreds of dollars some assume this might cost!

Also, studies show Americans are beginning to live longer, and this can and likely will lower premiums for all consumers, including seniors. Studies show that over 49,000 people nationwide are over 100 years old, up dramatically from just a decade ago. According to U.S. census data, the number of people that live to 100 or beyond is expected to double each decade, and by 2035, the 70-plus age group will more than double.

What does this have to do with your life insurance rates? Well not only is prolonged life and good health good news for America's seniors from a lifestyle perspective, it is also good news from a life insurance perspective. Insurance companies will be adopting new actuarial tables that incorporate new mortality levels within the next 5 or 6 years, many sooner. Actuarial and mortality tables are utilized by life insurance companies to compute the probability of death by a certain age. In other words, they tell life insurance companies how long you are expected to live on average based on your age and sex.

For the first time in over 20 years, the American Academy of Actuaries has revised the table to reflect America's trend toward living longer. Longer life spans mean that the mortality and expense charges you pay for coverage should be lower, which should in turn lower your premiums. Some insurance companies are claiming that the new tables will allow them to drop their rates by as much as 30 percent once they are adopted.

How Do Prices Differ Between Various Term Lengths And Amounts? You May Be Surprised.
Another important point to consider is that consumers should compare various term lengths and amounts. You may just be surprised by the difference in out of pocket expenses between a 10 year policy and a 20 year policy, or between a 20 year policy and a 25 or 30 year policy. Or between a $200,000 policy or a $300,000 or $400,000 one. Let's look at another example. If you are a 35 year old healthy female, you could find a 10-year $100,000 policy for as low as $7.09 a month. Bump that up to a $300,000 policy and the price may only go up by a few dollars a month; the same female can find a $300,000 10-year policy for as low as $11.22 a month, or a $500,000 policy for only $16.09 a month. Or you can increase that same person's policy to 20 year ($100,000) term length for as little as $8.24 a month or 30 year for as low as $12.24 a month.

Conclusion
It's a new year, and we should all resolve to make sure we are sufficiently covered with life insurance. Compare rates at InsWeb today, and see just how affordable term life insurance can be.

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