Who doesn't want to save money on any purchase? It's easy to spend more than you need to on life insurance for elderly parents (and others) if you don't know a lot about it. That's where we can help you. Here are three (well really eight) things you need to know to help you get the best deal on life insurance for seniors.
Way 1: Get the Right Type of Policy
Depending on the age of your loved one, you may have the option to get term or permanent life insurance. Which one is better for you? That will depend on what you are trying to achieve.
- Do you want final expense coverage for your parents? If so, you will definitely want a policy that will stay in force for their lifetime. The best of these will have the face amount and the premium remain level for the life of the policy.
- Do you need coverage for debt or mortgage coverage? You probably still want a permanent policy. This way the coverage won't run out before everything is paid off.
- Would a less expensive term policy work for you? Maybe, but did you know that when insuring the elderly some permanent policies cost LESS than term policies?
There are many different policies available for seniors in their 70's and 80's and it's very important to get one with all the features that are important to you and your family.
Way 2: Don't Go It Alone- Get Some Professional Help
As we mentioned before, there are many different policies and there are many different companies. With so many options to choose from, how will you know what will fit your needs? And what will fit your budget?
- What about policies for seniors you can buy online with no medical exam? They are easy to get, that's true. But you can't always see the details until it's too late. One of those companies has it's policies end at age 90. Shocker...and you thought you had a lifetime policy because it wasn't term life.
- These policies often go up in price every 5 years and although it's in the paperwork you get, it's not easy to notice and it may price you out of the policy as you get older.
- You can't get a quote online for universal life insurance or whole life insurance that requires a paramedical exam. You need to work with an agent.
- Can't I just call the insurance company? Absolutely, but then you are limited to only that company and their products. It may be the best choice, but you are excluding all other carriers.
Who should I talk to and why?
- We suggest you find an independent life insurance agent with experience in the senior market.
- They will know about all of the different choices available and which one(s) will fit your needs best.
- They will know which company will look at your health and history best. (We've had clients who would be declined by one carrier and approved by another for the same type of policy with the prices being almost equal.) You have no way of knowing which policy
- They will make the process easy for you. (We fill out the application with you. All you have to do is sign on the dotted line and complete the other requirements, and we help you through that too.)
- Your agent should be there for you from the first call to the time you need to cash in the policy.
Way 3: 5 More Ways to Save Money
- Get as much coverage as you need and can afford! Don't over insure, you will resent paying the premiums.
- If you can pay annually or semi-annually you will pay a little less for the policy.
- Don't wait. The younger you are when you are when you buy life insurance the less expensive it is. (Some type of policies allow you to back date for up to 6 months to save your age and keep your premium lower.)
- Make sure you are buying a policy where the face amount and the premium always stays the same.
- If there is an option to get coverage with or without a paramedical exam, getting the coverage with the exam will give you more insurance for your money.
The Bottom Line
We all want to get the best coverage for the best price. When you are getting life insurance for elderly people you have many options. Use an agent to get the best information which should lead you to a good solutions for your needs.