Compulife Software Asks, 'Is Your Term Insurance Guaranteed?'

Apr 04, 2001, 01:00 ET from Compulife Software, Inc.

    NICHOLASVILLE, Ky., April 4 /PRNewswire/ -- On January 1, 2000 most states
 adopted a new life insurance regulation called XXX (Triple-X).  The new
 regulation led to the introduction of a number of new level term insurance
 policies that have premiums that are not guaranteed.
     That's according to Bob Barney, president of Compulife Software Inc.
 Compulife provides term insurance comparison software to over 2,000 members of
 the life insurance industry and it operates a free public website at
 www.term4sale.com.  Term4Sale allows consumers to anonymously do instant term
 insurance comparisons from Compulife's extensive database of over 150 life
 insurance companies.
     Mr. Barney is warning consumers that they need to be vigilant when buying
 term insurance.  Barney believes that there are agents selling the
 non-guaranteed policies without explaining the risk of unexpected price
 increases.
     As background, Triple-X requires life insurance companies to maintain
 larger reserves for guaranteed level term policies.  The rules particularly
 affect term products which guarantee premiums longer than 10 years.  Life
 companies selling 20 or 30 year term policies have had to increase premiums to
 finance the new reserves.
     Barney gave the following example:
     Before January 1, 2000 a 45 year old male non-smoker could purchase a
 $250,000 30 year guaranteed term policy for $523.  Based upon an April 2001
 comparison from www.term4sale.com, the lowest price for a fully guaranteed
 30 year term policy had risen to $715.  By contrast, the same consumer could
 purchase a 30 year non-guaranteed term policy for only $512.50.  The $512.50
 premium is only guaranteed for 10 years.
     Prior to its introduction Barney had been an outspoken critic of Triple-X.
 On a number of occasions he wrote insurance regulators predicting that the new
 rules would lead to the introduction and sale of non-guaranteed term insurance
 policies.  During that campaign Barney warned that there would be agents
 selling those policies without explaining the reduced guarantee.
     While Barney would like to see such products banned from the market, he
 believes that there are those who want the cheaper products although he
 believes that most consumers will pay more for the guarantee when the
 difference is explained.  Barney's concern is that many consumers are buying
 the cheaper policies without ever having the risk explained.
     www.term4sale.com allows the comparison of either guaranteed term policies
 or non-guaranteed policies.  Comparisons containing non-guaranteed premiums
 have those premiums clearly marked as non-guaranteed.
     Barney is encouraging consumers to take a fresh look at their term
 insurance policies to make sure the premiums are fully guaranteed.  If not,
 and if the issue of guarantees was never properly explained or understood, he
 believes consumers should fire their old agent and find a new agent who
 properly discloses the alternatives.  www.term4sale.com lists agents who use
 Compulife's comparison service.
 
 

SOURCE Compulife Software, Inc.
    NICHOLASVILLE, Ky., April 4 /PRNewswire/ -- On January 1, 2000 most states
 adopted a new life insurance regulation called XXX (Triple-X).  The new
 regulation led to the introduction of a number of new level term insurance
 policies that have premiums that are not guaranteed.
     That's according to Bob Barney, president of Compulife Software Inc.
 Compulife provides term insurance comparison software to over 2,000 members of
 the life insurance industry and it operates a free public website at
 www.term4sale.com.  Term4Sale allows consumers to anonymously do instant term
 insurance comparisons from Compulife's extensive database of over 150 life
 insurance companies.
     Mr. Barney is warning consumers that they need to be vigilant when buying
 term insurance.  Barney believes that there are agents selling the
 non-guaranteed policies without explaining the risk of unexpected price
 increases.
     As background, Triple-X requires life insurance companies to maintain
 larger reserves for guaranteed level term policies.  The rules particularly
 affect term products which guarantee premiums longer than 10 years.  Life
 companies selling 20 or 30 year term policies have had to increase premiums to
 finance the new reserves.
     Barney gave the following example:
     Before January 1, 2000 a 45 year old male non-smoker could purchase a
 $250,000 30 year guaranteed term policy for $523.  Based upon an April 2001
 comparison from www.term4sale.com, the lowest price for a fully guaranteed
 30 year term policy had risen to $715.  By contrast, the same consumer could
 purchase a 30 year non-guaranteed term policy for only $512.50.  The $512.50
 premium is only guaranteed for 10 years.
     Prior to its introduction Barney had been an outspoken critic of Triple-X.
 On a number of occasions he wrote insurance regulators predicting that the new
 rules would lead to the introduction and sale of non-guaranteed term insurance
 policies.  During that campaign Barney warned that there would be agents
 selling those policies without explaining the reduced guarantee.
     While Barney would like to see such products banned from the market, he
 believes that there are those who want the cheaper products although he
 believes that most consumers will pay more for the guarantee when the
 difference is explained.  Barney's concern is that many consumers are buying
 the cheaper policies without ever having the risk explained.
     www.term4sale.com allows the comparison of either guaranteed term policies
 or non-guaranteed policies.  Comparisons containing non-guaranteed premiums
 have those premiums clearly marked as non-guaranteed.
     Barney is encouraging consumers to take a fresh look at their term
 insurance policies to make sure the premiums are fully guaranteed.  If not,
 and if the issue of guarantees was never properly explained or understood, he
 believes consumers should fire their old agent and find a new agent who
 properly discloses the alternatives.  www.term4sale.com lists agents who use
 Compulife's comparison service.
 
 SOURCE  Compulife Software, Inc.