Low interest rates will hurt life insurance policies

• 

Is your life insurance policy in danger of lapsing?

San Diego, CA (PRWEB) July 02, 2012

If you purchased a life insurance policy in the past, chances are that you have not reviewed it since then. It may be a costly mistake.

Universal life policies purchased several years ago are in danger of lapsing due to the low interest rates. How would you feel if you received a letter from your insurance company asking you to increase your premium by 500% just to keep it in force?

Bulent Erol of LHD Insurance Services, an agency in San Diego, CA says that policy holders need to review their annual statements carefully. Those policies are based on the assumption that the insurance company will achieve a certain return on the investments. Since they invest very conservatively the returns in the last several years have been very low, in some case lower than the projected rate of return. This means that the policies are in danger of lapsing.

The only way to prevent this is to review your policy annually with your agent and make sure the policy still serves your needs and fits your overall financial objectives.

PDF Print