Ana Diez-Roux (University of Michigan Site Director) World News Report
Life Insurance Activity Up 1.6%; Policy Rates Decline While Study Finds Downturns in Economy Beneficial to Population
Study from the University of Michigan indicates downturns in economic activity may have overall beneficial effects on the population and general life expectancy.
Nearly a third of all adults in this country have no life insurance. That's likely because it's just no fun thinking about our own mortality. Even harder to consider is what life would be like for our families after our death. But the ill-minded may be in for some significant savings during this economic downturn. Thanks to everything from increased competition, better product options and possibly changes in the economy insurers have been quietly lowering prices for term-life policies at an unprecedented rate. "If you're in the market for life insurance, now just may be the ideal time to window-shop that policy you've been long considering" said Rene Lacape, Vice President of Marketing at EQUOTE, a nationwide leader in the life insurance industry.
The Great Depression of the 1930s was the most important economic downturn in the U.S. and was the longest, most widespread, and deepest depression of the 20th century. A research study from the University of Michigan found that population health did not decline and indeed generally improved during this period, with mortality decreasing for almost all ages, and life expectancy increasing by several years. The authors of the study, Jose A. Tapia Granados and Ana Diez Roux, contributed these effects due to productivity, employment availability, economic conditions and stress. Surprisingly, if there isn't any work, people strain less. "Working conditions are very different during expansions and recessions. During expansions, firms are very busy, and they typically demand a lot of effort from employees, who are required to work a lot of overtime, and to work at a fast pace. This can create stress, which is associated with more drinking and smoking," Tapia Granados said.
In addition, on November 11, 2011 the MIB (Medical Information Bureau), a cooperative data exchange formed by the North American life insurance industry, released a report indicating that individually underwritten life insurance increased +1.6% in this past October. The report includes a statement from Lee Oliphant, MIB's CEO "At a time when the U.S. economy is struggling to define direction, the pipeline for new life insurance business appears to be holding its own."
Research such as the study from the University of Michigan reflects how the economy and other related factors like business, market, regulatory and other factors can effect anything from public physical and mental health to commercial products and services prices like insurance.
"Term Life Insurance, a popular alternative to permanent life or whole life insurance, is growing in popularity with consumers due to it being less expensive than locked policies," said Lacape. "Calling an insurance company direct usually results in that company attempting to sell you just the policies they offer. EQUOTE.com provides quotes on all products available serving as an effective vehicle through which to search for the lowest-cost life insurance available from various available carriers letting shoppers choose what's best for them," he added.