Life Insurance and Inflation


Photo by Karolina Grabowska from Pexels.

Life Insurance and Inflation

The rise of inflation concerns many people about their finances. Will their houses retain their value? Will they be able to continue to live and enjoy their current lifestyle? While prices may be rising and goods may be more expensive, remember that your life insurance policy should remain level. There may be several indirect factors that could be more significant. The future cost of living and expenses could rise, so preparing for this event is crucial.

Inflation makes the need for planning for your retirement and insurance even more paramount– savings today need to meet the needs of tomorrow. Higher inflation increases the amount of insurance you will need in order for your children or dependents to maintain their standard of living. Interest rates could soon fluctuate and make it more expensive to whittle down debt or pay your mortgage.

Will inflation lower the value of my life insurance?

Inflation Charts Insurance

Photo by Lukas from Pexels.

For consumers, inflation will impact the cost of goods and other expenses. Therefore, you should always keep your benefits advisor in close contact to review your lifestyle needs and likely adjust to changes accordingly. Inflation presents significant risks to insurance companies. Although inflation rates have been moderate for several decades and prosperous in decades like the 1980s, 1990s, and 2000s, the possibility of a switch to high inflation seems to be the present-day model track during these times of unsettled financial conditions.

Also, it is relevant to consider that high inflation may increase the future costs of the same kind of insurance! Why would you want to pay more for something when you can get it less expensive today? Remember the adage, “the best time to plant a tree was yesterday…the 2nd best time to plant a tree is today.” It is good practice to review your finances and see if your current plan will meet the needs and projections of the future. As insurance rates increase, the buying power of death benefits decreases, so you might consider increasing your death benefit or adding more insurance to supplement your coverage. Keep in mind that the cash value and death benefit are the central outlooks for long-term planning, and current price shifts have little impact.

Life Insurance Questions?

We hope that this information on life insurance and inflation is useful to you.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.

Get affordable life insurance quotes by clicking here.

See our other websites:


About Jose Lerma

Jose has been a career agent working with Empower Brokerage since 2021 helping clients from all walks of life find tailored solutions for their healthcare needs. He is passionate about helping people fulfill their dreams and helping clients live a more empowered existence. 

Leave a comment

Your email address will not be published. Required fields are marked *