There are a lot of perks to your golden years. You get discounts on meals and the best seats on the bus. But there are some difficult aspects, too, like getting life insurance.
For whatever reason, life insurance policies aren’t always a priority when we’re young. But now that you know the importance of protecting your assets and your loved ones when you’re not around, it’s difficult to get the job done. Some companies refuse to write insurance policies after a certain age or for people with common health conditions.
Getting good life insurance when you’re a senior isn’t impossible, though. These five tips will help you know what to look for and find protection, no matter your age!
Contents
1. Work With a General Life Insurance Agent
You may not have thought about it before now, but insurance agents aren’t all the same. Yes, they have comparable training and have to pass a test for their license, but the rest depends on where they work.
In most states, agents must have a license to sell certain types of insurance. Beyond that, they have to be individually approved by the insurance company that they want to underwrite for.
Every insurance company has its own regulations for screening potential agents. Your agent can only write policies for the insurance companies from which he or she is approved. It makes sense, then, that you could get a better deal with a different person.
Consider your car insurance, for instance. If you wanted to buy insurance from a close friend who happens to be an agent, you would be stuck with the policies and premiums they can offer.
When you work with an agent who’s only able to write policies for one company, you’re less likely to get approval. Even if you do, you’re limited to their restrictions and rates.
A general life insurance agent can research dozens of potential companies and find your best fit.
2. Check the Company’s Rating
As with everything in today’s mostly digital world, you will want to research the company you’re interested in working with before you give them any information.
Even if you’ve “heard” of it in the past, check the ratings with places like Standard and Poor’s. Look at the financial strength ratings and any complaints that are listed.
Bad life insurance is worse than none. People who end up taking out contracts with financially insolvent companies pay their premiums. Then, they find out they can’t cash in on their policy when they need it.
If the company looking to underwrite you has a poor reputation and high rates, keep looking. It could be beneficial to put that money into a portfolio instead.
3. Look at Value, Not Premium
Monthly premiums will obviously make a difference in your final decision, but don’t let them be the only factor. Look at what the life insurance covers to determine the best value for your needs.
Life insurance coverage varies from the bare minimum to full coverage. As a senior, you’re probably only going to qualify for a whole-life policy, not a term policy, but that’s not a bad thing. Whole-life insurance builds cash value; term policies don’t.
Some companies offer flexible adjustments if your needs change. You can decrease the death benefit, reducing your premiums. If money is tight, you can skip your payments for short periods.
Other life insurance policies build cash value. That means if you need funds for an urgent situation, you can access that cash while you’re still alive. It comes out of your beneficiaries’ benefits unless you replace it.
These advantages make a slightly higher premium for more benefits a better value overall.
4. Focus on Seniors-Only Insurance
As a senior, you have unique needs that not all insurance companies cater to.
Chances are, you don’t want or need term insurance anymore. That type of policy is okay if you just want your funeral costs covered or some debt handled, but term policies also have a maximum age at which you can buy one.
If you’re looking for the best coverage to protect your loved ones, a seniors-only policy is what you want.
Companies that write almost exclusively for seniors offer permanent insurance coverage. These policies never expire, and the premiums usually stay the same, regardless of changes in your health.
Some policies require a health exam before you can be approved. Others will grandfather you in without this requirement, but at a reduced rate for a certain period after the policy starts.
If your health is the reason you’ve been unable to get insurance in the past, guaranteed life insurance could be your answer. This is a good choice for people on a budget, too. The policy benefits are lower, but the peace of mind you get from knowing your loved ones are protected is priceless.
5. Watch Out for Policies That Feel Too Good to Be True
With age comes the benefit of wisdom, so you are probably wary of scams, and rightly so. Insurance policies are an easy door for scammers who love to prey on senior citizens.
Jason Patterson with Burial Insurance Pro states ” many of advertisements of life insurance over T.V. or through the mail are not policies you want to purchase. Many of them have a 2-year waiting period on the death benefit and are overpriced. It’s best to work with an independent agent, who can offer you several options in terms of companies. Many seniors can benefit from a Mutual of Omaha burial insurance policy.”
Even licensed agents might not be reputable. Don’t take anyone at surface level. Get recommendations from friends and family members who have worked with good agents.
Every agent has an assigned license number. You can, and should, look up their ratings online. It’s not an invasion of their privacy — it’s protection for you and your loved ones!
Conclusion
As you enjoy the slow, relaxed pace of retirement, you have time to think about things like what you’re leaving behind. Your legacy begins while you’re still around, spreading your love and knowledge to those you care about.
You want your family to be able to grieve without financial concerns. With senior life insurance policies, you can focus on making every day count, knowing you handled the money issues for them.
Author Bio:
Leon Grundstein has more than 28 years of experience in real estate development, with over two decades of experience in the retirement industry. He founded Tacoma Point Ruston with a game-changing business model to promote a healthy and robust retirement lifestyle for older adults.
