Life insurance myth or fact? Are those of us over age 60 really stuck with old people life insurance products like what is represented as appropriate for our age by AARP/New York Life? Is it that we had our chance at traditional life insurance and as soon as the AARP cards started coming in the mail, we weren’t really a good fit for companies like Prudential, Lincoln National or American General?
And lest anyone think we just pick on AARP, the internet and television are littered with ways to buy life insurance products that are far more expensive than what you need to pay, even if you have some health issues. Those companies would love for you to believe that getting traditional life insurance is a huge burden or hassle, when it’s not. Even though their products are more expensive and really just inappropriate for most of us in the way they’re structured, they laugh all the way to the bank every time one of us over age 60 clients falls for their pitch.
So let’s talk about the huge hassle and burden they want you to avoid and the options it opens up for you as far as products and insurance limits. On average the process for acquiring life insurance through a traditional company, with the help of a good agent, would take 4-5 weeks from the time you ask for a quote until you put a policy in force. The time you are actively participating in this process either on the phone with the agent or taking an exam where they come to you and there is no cost, is about an hour. If you have health issues and your doctor or doctors are a little slow in providing records for underwriting, this could add 2-3 weeks to the process. Some doctors just don’t consider it their priority to copy records. But even in the event of some foot dragging on the part of your physician, your time spent should still be contained to an hour from quotes to in force life insurance.
So, what’s the draw with the companies who make much of that hour? They eliminate the exam, and please stay with us on this, because this is huge to you. They agree not to have you go through a half hour exam in return for prices that are at least 3 times the life insurance cost per thousand as traditional coverage. And even though the save you that half hour and maybe ask very few health questions, it doesn’t mean they are giving up their right to review your medical or use undisclosed medical information, or in the case of no exam, undiscovered health information in contesting the payment of the life insurance death benefit when you die.
Does it make sense that the more that is laid on the table in the beginning, the less there is to contest if you happen to die during the standard two year contestability period, use both by traditional companies and companies that underwrite with few questions and no exam? Remember that this isn’t about you when you buy life insurance and for the one hour you give up now, your beneficiary may be saved a lengthy and sometimes ridiculously incompetent contestability investigation. If you have questions or would like to compare products and see what that one hour investment can gain for you and your spouse, call or email us directly. We can help.
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