If you have been procrastinating about purchasing a term life insurance policy, the cost of waiting is going to get more expensive.  Up until 2008, term price wars reduced term insurance premiums by about 30%, according to Donna Kinnaird, president of Swiss Re Life & Health America, Inc.  in an interview in National Underwriter magazine, Kinnaird states that in 2009, we saw 5%-6% increases in term life insurance prices, and this year about 1% increases.

Insurance companies are trying to be competitive with their term prices, but the costs associated with maintaining their reserves, as regulated by state insurance commissioners, have risen.  According to Kinnaird, while the products have to be competitive, they have to be sustainable for the long haul and, as a result, need to be priced appropriately.

The good news is that if you secure a term life insurance policy now, you can lock in premiums for the next 10 to 30 years.  So, if you have been procrastinating, get busy.