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U.S. GDP Shrinks, Life Insurance Quotes Rise

COLUMBUS, Ohio, Feb. 7, 2013 /PRNewswire/ -- With news that the U.S. economy contracted in the fourth quarter, a surprising yet promising trend was noted in the life insurance industry, one website saw an increase in the number of life insurance quotes requested in the new year.

(Logo: http://photos.prnewswire.com/prnh/20130207/PH55769LOGO )

While economists say there is no reason to panic, maybe they are right, TermLife-Insurance.com a website providing quotes to life insurance shoppers, saw an increase in the number of people requesting quotes for life insurance as well as applying for life insurance policies. It is the complete opposite of what you see in the GDP report. One would think with an economy shrinking so should sales, but that just has not been the case with life insurance sales for 2013 with this website.

Steve Schillereff, call center manager of the site TermLife-Insurance.com, said that, "despite the weakened economy, the first month of 2013 has shown a promising upswing in the life insurance industry."

"In the month of January, our website saw 5 times the number of people who ran life insurance quotes and 3 times the number of people who requested applications for policies," Schillereff explained. "We're interested to see what February will bring in terms of traffic from life insurance shoppers. So far we are seeing the same trend going into the first week in February."

What's surprising about the sudden rise in life insurance interest is that people typically cut back on spending during tough economic times. What is also surprising is that a good portion of the quotes were 30 year term life insurance quotes, which will help lock in rates for a long period of time. Schillereff stated, "The only explanation we have is with the uncertain economy people are looking to lock in rates while they can, considering life insurance cost are at all-time lows. It's a smart move to lock in now."

The good news, however, is that more people are looking for and buying life insurance than were previously, which will put them in a better position, financially speaking, should economic uncertainty continue. The reasoning is that if the economy contracts and people are struggling financially, a sudden death will not mean greater financial difficulties for the family members of the deceased.   

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