When you’re over 50 life insurance offers start coming from everywhere. Final Expense insurance. Burial life insurance. The truth is that the senior life insurance market is the most hammered niche in the industry.
Why? They think they can push our buttons when we turn 50 and make us believe that our insurance need has somehow dramatically changed and only AARP, Colonial Penn or one of the other million or so senior focused life insurance companies can help us. Well, nonsense. These companies are playing to fears and pillaging the bank accounts of those who get caught up in it.
They play to fears by marketing “no exam” and “no health questions”. So what’s really behind those two opportunities? No exam life insurance has been around forever and the way a company can offer life insurance without the information that comes from an exam is 1. by the check and balance system called MIB. The medical information bureau keep you from fudging on the questions and not taking an exam that would have shown a health issue. 2. You answer a health question honestly and who needs an exam, they just decline you, or 3. It is so overpriced that they can afford to take some hits from those who do slip through the system.
The truth is that most of the people who jump on the no exam idea would do just fine taking an exam. These companies market no exam like it’s the way to beat the system or as if it’s a rare person who can get good rates after taking an exam.
The for those who do have health issues companies play to their fears by offering insurance with no health questions. Consider that for a minute. Life insurance is profitable for companies that charge adequate premium to cover mortality costs, plus a little. If a company doesn’t do an exam and doesn’t ask anything about your health, the price they present is based on a mortality assumption right out of a horror movie.
And then most of the final expense life insurance companies want you to buy whole life insurance touting the growth of cash value in the policy as a place you can borrow from if you need money. Well, there is no having your cake and eating it too in senior life insurance. If you borrow the cash value out of that overpriced piggy bank you don’t have any life insurance or at least the insurance you have is reduced by the amount of cash value missing from it. And if you don’t pay the loan back your policy will tank. Kersplash! Down the toilet.
Bottom line. Just because we’re older doesn’t mean we have to turn to these companies that are truly using scare tactics to get us to spend too much. Independent agents like myself can help people like you, yes, even with health issues, and get you better coverage for less money and with better guarantees. If this is something you want to find out more about you can call or email me directly.
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