Why Cheap Senior Life Insurance Is Not Always the Best

Lenny Robbins
Oct 31, 2013 10:39:00 AM

cheap senior life insurance is not always the best choiceIf you’re a senior of any age and are looking for life insurance, the process of choosing what type and deciding how much coverage you need can be confusing.

If you’ve been getting instant rate quotes online, you should know that the rate you will actually end up paying could be far different than what a website tells you. You may be tempted to just take the lowest cost policy and be done with it.

But you should know that cheap senior life insurance is not always the best.

To make the best decision about your insurance needs, you need to learn how to identify quality affordable insurance. The thing is, you may not be able recognize a good deal unless you know precisely what you’re looking for. But by working with an independent life insurance agent, they can guide you to the best and most affordable choice for you.

Here are some of the factors that come into play when evaluating life insurance options:

Life insurance company stability

A.M. Best is the premier rating company that evaluates insurance companies and assigns ratings to them based on their stability and financial success. You want a rating of at least “A”. Why? Because you want a company that will still be in business when your policy comes due.

You can search for a company’s rating on the A.M. Best website and get immediate results. Alternately your independent life insurance agent can provide you with this information on request for any providers you’re considering.

If you insure with a company that has financial problems, rather than going out of business they will be bought out by a larger carrier.  When this occurs, your conversion options will change, and we have never seen your options here improve.  (Conversion is where you can take your term policy and convert to a permanent policy without any underwriting at the original rating you received, regardless of your current health. Your conversion pricing is at your current age.  If you have become uninsurable, or would be highly rated, this option can keep you insured, so you want good conversion choices.)

Premium comparisons

To know if you’re getting the cheapest price, you have to comparison shop. If you’re doing this on your own, it can be quite time consuming and confusing. You’ll have to input your information into various websites to ensure you’re getting quotes from all the best companies. If you’re not computer savvy, this may be even more of a challenge.

If you’re working with an independent life insurance agent they can do all of this legwork for you which can be a huge time saver.  Additionally, remember your agent has access to many more companies than you can find in an online calculator.  Many large sites limit the number of carriers in their online calculator. 

Health concerns

If you’ve got medical issues such as diabetes or if you’re a smoker most insurance companies will quote you higher rates. However, there are some insurance companies that specialize in offering coverage to individuals with medical problems and to seniors in general.

But if you don’t know which of these companies are more willing to offer you affordable coverage, you won’t be able to get the cheapest coverage. Your independent life insurance agent will know which companies are best for you to apply with.

As we age, we often have multiple health concerns and this can make underwriting even more challenging.  An independent life insurance agent can help you get the best deal that is possible based on your personal health history.  We have an in house underwriter to help us if you have a particularly tricky situation. 

The Bottom Line

Before you rush out and snap up the first policy application you find for cheap senior life insurance, just know that it may not be the best option for you (and you may not qualify for this rate!).

Rather than trying to learn how to evaluate your insurance options since this is a decision you will likely not be making on a recurring basis, it’s best to have a professional offer guidance and industy expertise. Consult with an Independent Life Insurance Agent to advise you on getting the best life insurance for your needs. 

Download Life Insurance 101