New Morbidity Table Likely to Lower Life Insurance Rates

Posted in Life Insurance , Save on Life Insurance

June 22nd, 2009

Those searching for lower life insurance rates in India will be happy to know that a new morbidity table to be released in the fourth quarter of 2009 will very likely help to reduce rates. The table, released byThe Mortality and Morbidity and Morbidity Investigating Centre (MMIC) is usually released periodically to provide new stats on life expectancy.

Replacing the current table, which reflects stats from 1994-96, the new table is said to show individuals having a longer life expectancy based on stats from 2006-08. With the masses in India having a longer life expectancy as a whole, experts expect life insurance premiums to drop.

How Life Expectancy Has Changed

According to stats from MMIC, life expectancy in India has increased and mortality has dropped considerably. In fact, mortality rates are said to have dropped by 25 to 30 percent in higher age brackets over the last 12 to 15 years. Because the rates have dropped so significantly, premiums are expected to finally lower. MMIC thinks the drop could translate in a reduction of 15 to 20 percent in some segments.

Types of Insurance Affected

According to reports, the type of insurance most affected by the morbidity table will likely be term coverage. Unit-linked insurance coverage is also likely to be affected.

For those who will benefit from this adjustment in life expectancy, lower rates should be expected inthe near future. There’s no news like good news, and in this case, a morbidity table may have just brought some policy owners they best news they’ve heard in a while.