Ame®icano;1576832 said:In late 1990s, the price of term life insurance fell dramatically. This posed something of a mystery, for the decline had no obvious cause. Other type of insurance, including health and automobile and homeowners' coverage, were certainly not falling in price. Nor had there been any radical changes among insurance companies, insurance brokers, or the people who buy term life insurance. So what happened?
The internet happened. In the spring of 1996, quotesmith.com became the first of several websites that enabled a customer to compare, within seconds, the price of term life insurance sold by dozens of different companies. For such websites, term life insurance was a perfect product. Unlike other forms of insurance - including whole life insurance, which is far more complicated financial instrument - term life policies are fairly homogeneous: one thirty-year guaranteed policy for $1 million is essentially identical to the next. So what really matter is the price. Shopping around for the cheapest policy, a process that had been convoluted and time consuming, was suddenly made simple. With customers able to instantaneously find the cheapest policy, the more expensive companies had no choice but to lower their prices. Suddenly, customers were paying $1 billion less a year for life term insurance.
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Apples and sledgehammers. Term life insurance is term life insurance is term life insurance. The only thing that fluctuates is the amount the policy is for. Health insurance doesn't work that way. For starters, there are fee-for-service plans, health maintenance organizations, preferred provider organizations, managed care organizations, and high-deductible plans. And all that's before getting into policy details relating to co-payments, co-insurance, and other things.