In recent times, life insurance for seniors has become a more frequent choice for older people who want to secure the financial future of their loved ones. However, some people have come to be taken advantage of, partly because they do not perform enough research about what it is they may or may not need out of a policy. While seniors may be approved for certain policies up to age 70 or 75 (depending on the state), there are a number of concerns they may want to consider before choosing which option is best for them. For more information, please read the page on life insurance for seniors.
Term life insurance for seniors is generally the option most commonly offered by insurance companies. It may be the most affordable type of life insurance for seniors; however, monthly premiums may rise very quickly as people age. Some legislation has been put into place to protect seniors from being misled into buying a life insurance policy when it may not be an affordable or necessary option. For example, as of March 2011, the New York State Insurance Department put a number of regulations into place to prevent life insurance agents from using titles such as “Certified Senior Adviser” when there are no state qualifications for such a position. The Insurance Department stated, “While the vast majority of agents and brokers are honest and trustworthy, there are those few, motivated by the commissions they’ll receive;”; therefore, seniors should be wary of brokers who may consider them easy targets for lofty commissions.
To help avoid the risks of being taken advantage of, seniors may want to follow these steps to decide whether life insurance is right for them:
1. Consider why life insurance may be necessary:
- What exactly is the life insurance meant to cover?
- Mortgage? Estate? Business?
- Can retirement savings not provide for these expenses?
2. Try to determine how much money you’d like to be insured for:
- An online life insurance calculator could help figure out how much money is needed for a policy
3. Get a free online quote:
- Determine whether life insurance for seniors is an affordable option to cover expenses
- Consider other means of providing for loved ones after death
4. Ask for advice from other seniors about dependable insurance brokers
- Word of mouth is a great tool to figure out who will find what can be appropriate affordable life insurance for seniors
5. Contact more than one broker to evaluate top options
- Getting a second opinion can’t hurt in many circumstances
6. Sign up for a life insurance policy if these steps point to “yes”
- Get one step closer to securing the financial future of your loved ones
For more information on life insurance options for seniors, read “Seniors: Should You Choose Guaranteed Life Insurance or Term Life Insurance? <hyperlink: article 2>