Good News! Insurers Extend Your Lifespan Wall Street Journal (06/24/03) Vol. 17, No. 8 p.D1; Oster, Christopher
Mortality tables used by the life insurance industry to set premium rates will soon be revised be insurance regulators, which could save consumers a great deal of money on their policies. Experts predict that since many consumers are living longer, insurance companies will be forced to decrease their rates for term-life coverage by as much as 30 percent over the next few years. However, consumers with less significant coverage will see smaller drops in their rates. Regulators will increase the average life expectancy for most males from 70 to 74 and women's average life expectancy will increase from 77 to 79, increases that can be attributed to healthier life styles and advances in the medical industry. Even though the new mortality tables have yet to take effect, USAA Life Insurance Co. has already cut its rates between 10 percent and 30 percent. On the other hand, MetLife Inc. and Prudential Financial Inc. state that the new tables may not have a profound effect on the industry, and that consumers should be aware that those companies using the new tables may not provide the best coverage or the best price.