If you’re over age 50 and are looking for the cheapest life insurance policy, there are 2 things you should know:
1. You’re probably not going to save 40% to 60% on your life insurance premiums as many companies claim. And…
2. Getting an online term life insurance quote over 50 is practically worthless.
Every industry has its secrets and the life insurance industry has plenty of them. Shopping for life insurance is no different than shopping for any other type of insurance, you need to compare prices. But you also need to be careful of Inexpensive life insurance claims that sound too good to be true.
Industry Secret # 1 – Why an Online Term Life Insurance Quote Over Age 50 is Virtually Worthless
Life insurance quoting sites seem to be everywhere. So, if there are so many, it must be a good way to buy life insurance, right?
Maybe. Maybe not.
When you get a life insurance quote, either online or from an agent, don’t take it too seriously. Unless, the agent has asked you some questions about your medical background, including your family health history.
A professional agent or broker will have a good idea after conducting a thorough interview whether the quote generated by the website will actually ‘hold up.’
Believe it or not, many factors go into the life insurance approval process. Health history, credit history, family health history and even driving history can play an important role in the ultimate price of your policy.
If you ever filed for bankruptcy, had a moving violation or even a DWI, these “problems” will cause the insurance company to consider you a higher risk and could make your policy cost more. Most agents don’t take the time to ask the right background questions and they try to convince people to “let’s just apply and see what happens.” You don’t want to buy a policy from this type of agent. They are not insurance consultants. They are gambling with your future and your money.
Industry Secret # 2 – Most Insurance Quoting Websites Are Lead Generation Sites
Some insurance quoting sites are not what they seem. Many of them are lead generation sites for insurance agents. Lead generation is big business. Agents pay top dollar for leads and most agents can’t get enough of them. That is why these lead companies sell their leads over and over again to many different agents at the same time.
Many of these lead generation companies can have 20, 30 or even more sites running at the same time. Unsuspecting visitors go to these sites hoping and expecting to get a life insurance quote but all these websites really do is gather your personal information and sell it to insurance agents.
If you’ve ever filled out an online form at one of these sites, you know how frustrating it can be to be sitting down to dinner only to be interrupted by a relentless insurance agent who wants to stop by next week, because he “will be in your neighborhood” and would like to talk about your life insurance needs.
Tips to Finding Inexpensive Life Insurance Over 50
Tip # 1: Avoid Captive Agents
Don’t go to the agent that sold you your home or auto insurance for a life insurance quote. These are captive agents and only have access to one company – Theirs. Even if they do represent more than one company, there will probably only be 3 or 4 companies to choose from.
Ultimately, a captive agent will try to convince you into buying a life insurance policy from his or her company because that is where they receive the highest commission payout.
Tip # 2: Shop Around
Buying life insurance can sometimes be confusing and frustrating so many people don’t like to get multiple quotes because it is time consuming. Try to get several quotes so you can compare plans and rates and know which company offers the best rates.
A good strategy is to work with an independent agency like us that works with numerous insurance companies. That way you can examine all your options and receive unbiased advice.
Tip # 3: Check The Financial Stability of the Insurer
Cheap life insurance is not a good bargain if the insurance company won’t be around in future years to pay your claims. Check the financial stability of your insurance company with all the financial rating services such as: A.M. Best, Standard and Poors, Moody’s and so on. A professional agent will provide this information in most cases without you having to ask.
Tip # 4: Skip the Policy Riders
If your goal is to buy the most inexpensive policy, then don’t opt for additional riders. Policy riders such as Waiver of Premium, Accidental Death Benefit and Child or Spousal riders increase the cost of your policy. For most people, these riders are not necessary. If your spouse or children need life insurance, they should have their own policies. It will be cheaper in the long run and they will have better coverage.
Tip # 5: Consider a No Medical Exam Life Insurance Policy
Life insurance over 50 with no medical exam is becoming very popular in the insurance industry. Many companies are offering policies with simplified underwriting or only a few medical questions. This type of policy could be good for people with health issues and can’t qualify for a traditional fully underwritten policy.
Term Might Not Be The Most Inexpensive Life Insurance Option Over 50
The best life insurance over age 50 is not necessarily term insurance. Term insurance is temporary coverage which eventually ends. At best, it is a bet you are making against the insurance company that you are going to die within the term you choose. Buy a 20 year term policy and die one day past term, there is no payout.
If your insurance needs are long-term or you are unsure, buy a term policy with a conversion option to a permanent policy such as Universal Life or Whole Life. Having the conversion option could make the policy more expensive but some companies life William Penn, Banner Life and MetLife policies include the right to convert without additional costs.
Universal life insurance
An alternative to temporary coverage like term insurance is Universal Life insurance. Universal life insurance, is a permanent life policy that offers flexibility in premium payments and keeps the death benefit in force no matter how long you live.
This type of policy also has cash value growth, so interest grows in your account which could keep the policy in force even if you stop paying some premiums. If your needs are long term, this could be the best inexpensive life insurance option over 50 in the long run.