Term Lapse Stats Needed for Article

[Guest]

A reporter whom I know is working on a story for Consumers Digest (due out in May) and has asked me if I know the following numbers:

1. the % of people who lapse their term ins. before it ends

2. the % of people who go to term but die after it runs out?

Does LIMRA keep those numbers? Anyone know of a source?

Thanks,
Al

 

[CHUMPS FROM OXFORD]

1. 84%

2.13%

Just a guess of course.

 

[Guest]

1. 84%

2.13%

Just a guess of course.

Thanks, but the gal is going to want a credible source. Somehow I don't think she is going to see "chumps from oxford" as the most credible she can find !!!

Seriously, if anyone knows of some credible numbers please let me know ASAP... via PM if you wish.

 

[m2788]

Less than 2% of people that own term insurance will die from it.

More than half the term policies will lapse before the end of the period.

Most people after the term period is up still needs some type of life insurance. The amount may be much less but they still need it.

 

[Norwayguy]

Al we all know who has the stats and that is the actuaries at the carriers....The question is if we could get them to release the info.

 

[VolAgent]

Al we all know who has the stats and that is the actuaries at the carriers....The question is if we could get them to release the info.

Just look at the numbers and realize how rarely it pays out.

Just for an example, just wrote a 54 year old male, preferred non-tobacco. $1,913 a year for $1,000,000 of 10 year term. So in 10 years, he'll pay in $19,130 in premiums. So roughly 53 policyholders will pay in as much in premium as one death benefit. Factor in commissions, expenses and profit, and the company is probably expecting to pay 1 claim out of 80 or 100.

 

[GreenSky]

Since most people on this forum are arch-cons, I wouldn't trust any information.

Perhaps the NY Times has this information. Or maybe Shecantbeserious can give some help.

Or maybe an intelligent agent would pick up the phone and call a life insurance company. (Perhaps an intelligent writer could have done the same thing).

Rick

 

[Guest]

I got in touch with LIMRA and their PR gal said that about 92% of term policies lapse based on 2007 numbers. He had no research on how many people go past term and die later without coverage.

Thanks.

Al

 

[Norwayguy]

I got in touch with LIMRA and their PR gal said that about 92% of term policies lapse based on 2007 numbers. He had no research on how many people go past term and die later without coverage.

Thanks.

Al

If you could have just stopped with the bold printed words I could give you a definate answer of 100% of people that go past term die later I would think it would be a hard statistic to come up with...say a person late in life purchases say a FE policy how would anyone know if he A. had a term policy earlier in life and B carried it to term. Anyone buying leads of people in their 50s and 60s can see that people do buy policies after the initial term ends....Maybe something could be exstrapulated from how many people at the end of their conversion option convert the policies.

 

[sman]

Less than 2% of people that own term insurance will die from it.

Holy crap! I've never heard of anyone dying from their term insurance. Do you know which carriers have such deadly insurance? I want to make sure I avoid those carriers.