Inflation and Life Insurance

Inflation and Life Insurance
You don’t have to be an economist to realize the impact of inflation. A trip to the grocery store will provide a quick lesson. But how does inflation impact life insurance? There are ways in which inflation does and doesn’t make a difference when it comes to life insurance. Here’s a look.
Inflation Will Impact the Value of Life Insurance Proceeds
What looks like sufficient coverage today may not look quite as adequate in the coming years. There was a time, for example, when million dollar life insurance policies were rare. They are much more common today. Such a policy taken out 20 years ago will buy significantly less today.
The Relative Value Between Premium and Proceeds Will Stay the Same
While the value of the proceeds of a life insurance policy may be eroded somewhat by inflation, it is important to note that in most cases of whole life and permanent insurance, the relative value will remain the same. In other words, what you pay in premiums is also being eroded at the same pace as the benefits. This keeps benefits or proceeds in relative balance with what you pay.
It Is Why You May Want to Revisit Your Coverage
Inflation is one of the key reasons to have a life insurance review every few years. What seemed like a large amount of coverage may not be enough under today’s prices. College is more expensive, as are living expenses in general. You also may be making more income to replace now than previously. A life insurance review can help ensure your coverage is keeping up with inflation and the financial goals you have for your family.
Getting a life insurance review is simple. Gather your policies and contact one of our independent life insurance professionals. They are qualified to help canalize the policies issued by any company. Have a discussion about your current goals and allow them to do the work for you; shopping a network of companies to find you your best value. Of course, the final decision is yours.
Is inflation eating away at the value of your life insurance policies? Should you be concerned? Get a life insurance review and price quote today for the peace of mind you and your family deserve.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
The March Deadline: Understanding Your Life Insurance “Conversion” Window
Is your term life insurance expiring soon? Learn how to “convert” your policy into permanent coverage this March without a new medical exam.
The Paperless Legacy: Managing Your Digital Assets and Insurance Logins this Spring
Can your family find your policy? Use this first week of Spring to organize your digital insurance documents and legacy passwords.
Spring Into Health: Why Your March Physical is the Best Time to Lock in Life Insurance Rates
Getting your Spring physical? Learn how your health stats determine your life insurance premiums and how to “ladder” your coverage for better value.
The Ultimate Spring Cleaning: Why March is the Month to Audit Your Life Insurance Beneficiaries
Don’t just clean your closets this March. Ensure your life insurance beneficiaries are up to date to protect your family’s future.
The Business “Prenup”: Why Business Partners Need Life Insurance in February
Love your business partner? Protect your company with a Life Insurance-funded Buy-Sell agreement to ensure the business survives the unexpected.
New Life, New Responsibility: Why a February Arrival Means Updating Your Policy
Welcoming a new family member this February? It’s time to move life insurance to the top of your to-do list to ensure your child’s future is secure.
A Presidential Legacy: Using Life Insurance to Fund Your Charitable Vision
What will your legacy be? Learn how to use life insurance to make a significant charitable impact this Presidents’ Day without depleting your current savings.
A Gift Beyond Roses: Why Life Insurance is the Ultimate Expression of Valentine’s Day Love
Roses fade, but financial security lasts. Discover why life insurance is the most selfless Valentine’s Day gift you can give your family this year.
T-Minus 30 Days: The Late January Review of Beneficiaries and Tax Implications
Tax forms are here. Review your life insurance beneficiaries one last time, and understand the tax status of policy payouts vs. accrued interest.
The Mid-January Check-Up: Why Scheduling Your Life Insurance Exam Now Locks in the Best Rate
Don’t delay the exam! Schedule your Life Insurance paramedical exam in mid-January to lock in your best rate and complete your application process quickly.