It is becoming more popular for individuals to initiate their search for senior life insurance online. Most individuals start out the process by simply wanting to get a quote in order to gauge how much this is going to cost them. There are a few price-shopping tools available similar to the one we created for our users. However, we’ve learned that there’s a bigger problem with this quoting tool than we originally anticipated.
If an individual begins their process by using a quoting tool, they will simply purchase a policy based on price. These quoting tools do not provide any comparisons between the types of plans that are being offered, nor do they give a breakdown of each policy’s terms and conditions. It’s very difficult for the average consumer to decipher between these quotes to ensure they’re comparing apples-to-apples.
As an agent, my perfect-case scenario would be for the client to begin their search by calling us directly. This would allow us to get a better understanding of their situation and also clarify what they want to accomplish. By doing this, an agent can provide more accurate quotes, and the client has a very good understanding of what they qualify for. We also like to provide clients with basic questions to ask when talking to other insurance companies. This knowledge can empower a client to cut through the confusions and ensure they’re getting the policy that they deserve.
If someone does stumble upon a quoting tool, there are a few areas to pay attention before committing. These can be broken down into three main questions. The answers an individual is provided with will expose potential areas of weakness and could prevent a lot of buyer’s remorse down the road.
First, always ask, “Does your policy have a waiting period?” This is very important because it’s very common for policies to have a 2-3 year waiting period. This means a client would have to have the policy for a period of 24 or 36 months before it would pay out the full face amount. There are times that this might be the only option, however, start by looking at companies that offer a full policy from the day.
The next question to ask is, “Will the monthly premium ever change?” Many companies offer great entry-level rates, but the fine print specifies the senior life insurance rates can change. It can be as often as every 12 months or it might be every 3-5 years. Either way, this can cause a lot of problems for seniors because, as they age, typically their budget gets more confined. If the rate continues to go up, it may cause it to become unaffordable.
The third and final question is, “Does this policy ever cut off?” It is not uncommon that policies people intended to use for covering their final expenses or burial costs will terminate unexpectedly. They did not realize that the policy they purchased was set to end at age 75 or 80. At this point, it’s most likely too expensive to purchase a new policy or health prohibits them from finding a replacement.
It is easy to see how important it is to ask the right questions. To eliminate some of these concerns and begin to navigate your way through the process, feel free to call one of our agents.