New York Democrat Says Texans Are Raising Life Insurance Costs—Is He Right?
Summary
A New York State senator, James Skoufis, says life insurance costs in New York may be higher because insurers use national data that mixes New Yorkers with people from states like Texas, where people tend to have shorter lifespans. He proposes a law to make insurers use only New York's specific data to set rates, aiming to reduce costs for New Yorkers.Key Facts
- Senator James Skoufis argues that using national mortality data raises life insurance costs for New Yorkers.
- His proposed TEXAS Act would require insurers in New York to use only state-specific life expectancy data for pricing.
- Life expectancy in the U.S. averages about 79 years, but varies widely by state, with New York around 79.6 years and Texas around 77.1 years.
- New York has lower uninsured rates (4.9%) compared to Texas (16.8%), linked to different health policies.
- New York ranks as the most expensive state for permanent life insurance, averaging $1,500 per year.
- Experts say while national models can hide regional differences, other factors like age and individual health mostly determine premiums.
- Life insurance prices consider many details, not just state-level life expectancy averages.
- The proposed law aims to prevent New Yorkers from indirectly subsidizing higher risks in other states.
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