At this point, you’ve most likely done a lot of research on senior life insurance plans. You’ve sorted through many different companies, you’ve compared multiple quotes, and you’ve determined which policy you’d like to move forward with.
One of the most important things, aside from choosing the right policy, is choosing the right payment option. All companies will offer various options. For instance, you can pay your bill quarterly, semi-annually, or annually by writing a check each time the payment is due. Also, you can make monthly payments. If you select the monthly payment option, all companies are now requiring that you pay using some sort of electronic debit method.
Some companies will allow you to have it taken off a credit card. Some companies simply offer to have it automatically withdrawn from a checking or savings account every single month. In our agency, we highly recommend that an individual sets up their payment to be automatically drafted out of their bank account every month. We feel this is important because we’ve discovered that the majority of policies that cancel do so simply because the payment was forgotten or missed for some reason.
For those that are doing quarterly, semi-annually or annually, it requires a much bigger payment to be paid at each interval. If life happens, and an unexpected bill is due, this can cause that larger payment to be difficult to pay at that time.
Those that are selecting monthly and electronic, but they’ve opted to have it come off of credit card every month, have seen problems simply because they have canceled that credit card and forgot to update the billing information. Also, the credit card can expire without their knowledge.
There are grace periods on all policies for payments to be made. However, if that grace period is missed, the policy is canceled and an individual will have to start all over. For some, this can be very difficult, because now health is putting them in a situation where they may not be able to afford a policy, or they may not be offered the policy that they desire.
This is why we specifically recommend an individual to set up their payment option to come directly out of their bank account on a monthly basis. This is the payment method that sees the smallest amount of change and has the lowest risk for cancellation.
If you would like to speak directly with a licensed agent. We are licensed in most states and would be glad to address any questions or help you compare Term life insurance for seniors as well as guaranteed life insurance for seniors.