I recently received a request from a gentleman who was looking to purchase a life insurance policy for a senior. When I called him I immediately got a response from the other end of the phone saying “your prices are too expensive, I can’t afford it because I’m on a fixed income”. Before he hung up I quickly asked how much coverage he was looking for. He stated that he was looking for a $25,000 policy. I asked him if he had looked at $10,000 to $15,000 and he said he did not. He then asked. “Would that make a difference in price?”
I was actually very surprised by his question because as an agent I naturally assumed that an individual would know a smaller policy would have a cheaper monthly payment. After spending about 30 minutes with him on the phone he ended up purchasing a $7,000 burial insurance policy from a top-rated company. He was very grateful that I was willing to offer a smaller policy and explained the differences between all of the various companies and policies that exist, including guaranteed acceptance life insurance for seniors for those that are higher risk due to health conditions.
After having this conversation I realized there are a lot of people on a fixed income that assumes they simply cannot afford a life insurance policy. I personally do not believe this to be true. I do, however, believe that if you’re on a fixed income you may need to readjust your expectations for the type or size of policy you should consider. If you’re willing to approach this process with an open mind, here are a few suggestions that I would recommend.
First, make sure that you’re dealing with an agent that you’re comfortable with. If you feel pushed, rushed or feel like there’s an expectation for you to purchase a policy you’re not comfortable with, feel free to hang up the phone and call another agent.
Secondly, I would suggest following your gut. For instance, what should you do if you’re considering a policy but it’s out of your financial comfort zone? Oftentimes I recommend scaling back the policy to get the monthly payment in a range you’re comfortable with. I always tell my clients, “The best life insurance policy to buy is the policy you’re comfortable paying for”.
After looking for an agent you’re comfortable with and picking a policy that you feel like you can afford, I would recommend doing some research on the company that you’re buying the policy from. Confirm that they have good financial backing and a good reputation.
If you’re confused about your options or have questions or concerns, you’re more than welcome to call our office to speak to one of our licensed representatives. We are licensed in most states and would be glad to assist with any of your needs.