Harry Gross: Shop for insurance

Dear Harry:

My husband has a five-year life-insurance policy that he's had for more than 10 years. How long are we supposed to pay the premiums? Why did the premium just go up? We are told that there is longer life-expectancy now. Shouldn't the premium be going down?

What Harry says: It seems as though you have a five-year renewable term policy. This is not the same as a whole-life policy with a limited number of premiums. For example, there are policies available that require premiums for only 20 years. The premiums are high enough to give you lifetime coverage. From my view, what you have is better. Your insurance policy gives you coverage for five years, but you may renew it if you wish at a higher premium because of the fact that you are older at the renewal date. However, you are correct in your assertion that life expectancy is greater now than it was five years ago. You may be able to get a new policy with a rate lower than on your present one. Do a little shopping. To meet my standard of safety, make certain that the new company is licensed to issue the same policy on New York residents. And keep the old one in force until you have the new one firmly in your hand. *

Write Harry Gross c/o the Daily News, Box 7788, Philadelphia, PA 19101. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.