Permanent Life Insurance rates increase
Economic conditions and low interest rate pressures are the factors behind increases to Permanent Life Insurance.
Since October 15, four insurance companies increased their rates with others contemplating following suit in short order.
“We led the first round [of increases last year] and we are leading this round," Paul Smith, vice-president of marketing and product development at Manulife Financial, told the Financial Post about the increase in Oct. 15, when premiums jumped as much as 12%.
"Interest rates have fallen. When we did our price change last year, we looked at it historically. The way we figure that price out is we discount it at what we think we can invest the premiums at."
Click here to view a video by PPI Solutions about the increases. PPI Solutions was formed in 1978 and is a new organization combining the strengths and resources of two of Canada’s largest MGA’s, Financial Management Group and PPI Financial Group.
