Maybe your term life insurance policy ended and you wonder whether you should worry about getting a new policy. Want the truth about life insurance for seniors? Here are the 5 biggest myths that prevent many seniors from getting the best life insurance:
1. Whole Life Insurance is Your Only Option
Choosing whole life is an expensive way to go. Since the policy accumulates cash, you have to put that into the policy along with paying the insurance coverage. Besides, did you know that with whole life your beneficiaries don’t get the death benefit AND the cash value? That’s right. The insurance company keeps the cash!
Guess what? Guaranteed Premium Universal Life Insurance offers permanent coverage for significantly less cost than Whole Life, and can be structured so that it doesn’t grow cash value.
2. Term Life Insurance is Always the Cheapest
As we age, the difference between the premiums for term and permanent coverage gets smaller. For seniors, permanent insurance may cost the same or even less than term life insurance.
Have your independent agent check the pricing. Additionally, if you have certain medical issues, special programs called “table shaving” can help you to qualify for a better rate, which can make coverage for permanent life insurance cheaper, or very close to term life insurance costs.
3. Seniors Can’t Get Life Insurance
Not true. Even up to age 85 you can get life insurance. Some people don’t even look for life insurance as they get older, thinking that they can’t get it. The truth is that you can get life insurance as a 70 or 80 or even 85 year old with some companies.
As we live longer and our retirement benefits are stretched more, life insurance becomes an important way to protect our spouses and families, so talk to your independent life insurance agent about life insurance for people your age.
4. Seniors Don’t Need Life Insurance Anymore
Wrong. What about your spouse? Special needs child? Children and grandchildren? Life insurance is not just for protecting families with young children. Talk to your independent life insurance agent about the other uses of life insurance. Many seniors use life insurance to:
- Maximize retirement income.
- Provide protection for a family business.
- Create liquidity for their estate taxes.
- Give financial help to children.
5. Life Insurance isn’t Affordable for Seniors
Wrong again. What really isn’t affordable is not protecting yourself and your family. When you work with an independent agent, you have many options for life insurance from multiple companies and many different policies.
An independent agent who specializes in insurance for seniors is an industry expert who can help you find a carrier who is most likely to give you a the best rating you can get and therefore the most affordable coverage possible for your age, health, personal situation.
The Bottom Line
Life insurance for seniors is important and you can find out more about it if you talk with an independent life insurance agent specializing in seniors. Don’t neglect this important part of your financial planning. Talk with an independent agent today.
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