Life insurance for seniors on a fixed income

Hello, this is Chad McMahan with protect with insurance, and this is another life insurance episode now. This one is on life insurance for seniors that are on a fixed seniors, and it can be very, very stressful and very, very tricky for our clients to get a life. And it’s going to take care of them. And more importantly, Take care of their beneficiaries, their loved ones when they pass away and it’s in the meantime, and that can be a real, stressful, real tricky thing.

So there are a couple of pitfalls. I want to mention things to be careful of. And then there are strategies to get the most affordable life insurance you can. The pitfalls that you need to be careful of is there are life insurance providers out there, life insurance companies that they market really hard towards affordability, but what you’re paying for over however many years is something that is very risky.

For you and very risky for your loved ones. So let me be specific with you. There are programs out there that are one year renewable term life insurance policies for basically any health category, any health problems, no problem. We’ll approve you a one year renewable, which they don’t really tell you about that.

And they don’t talk about it. But what it means is, and this is a great example, is AA, RP, cheapest insurance. You can get. Here’s the problem. Your health is only guaranteed for each one year cycle. So something comes up on your medical database. You get diagnosed with cancer, you, something, anything at all, severe, a chronic condition, a terminal condition.

Critical condition gets diagnosed. That’s a red flag now on your MIB, your medical information Bureau. And in any time they can say they come up to that one year marker. And they can say, you know what? I know you’ve been working with us for 20 years paying every single month or every single year for 20 years.

But at this time we’re not going to continue your insurance and they’re within their legal and it may not be ethical, but they’re within their legal rights. To do that and they can suffer with you at that point. So you pay in for however many years, something comes up and they say, sorry, because they’re running a business.

You have to remember it that these insurance companies they’re running a business. So that’s a fast way to go bankrupt and lose a bunch of money. If you keep a contract, you continue a contract for another year when you don’t need to. And it’s very likely that the client is going to be passing away. So that’s their perspective.

Now our perspective is that there should be criminal. It’s not, but it should be. And the reason why it’s not criminal is because it’s in the black and white of their contract, that it’s a one year renewable term. And that’s what that means. So here’s our, there are two solutions to that. You have to either make sure that if you’re going to get term coverage, it’s longer than a year, minimum of 10 years.

That’s the first thing. Secondly, you’re probably gonna want whole life and not term at all. So most seniors, that’s what they want. They want whole life because they don’t want something that’s going to expire. They want something that’s permanent, whole life insurance.  another term for it is pure life insurance.

And it’s a policy that goes until you die. No matter when that is, whether it’s tomorrow or whether it’s in 50 years. So most seniors go that route and that eliminates the risk. Now getting the cost down. This is the number one issue for people out there getting life insurance. How do you get the cost down and make sure that you’re also protected and your beneficiaries are also protected?

What you need is there are two ways you can go about this one. You can spend a lot of time and a lot of energy and you can shop a whole bunch of these different. Life insurance carriers, the companies that write those life insurance policies, not the agencies, but the life insurance companies, or you can reach out to a reputable, trusted life insurance agency.

just as an example, our, our company protect with insurance as an agency and we are independent. We’re not, what’s called a captive agency. We don’t work for mutual of Omaha. We don’t work for Transamerica or state farm, or any of those things. We are independent, which empowers us to do more for you.

We can reach out to mutual of Omaha. We can reach out to foresters, trans America, all these companies, and we can pull prices, wholesale prices being what they offer to everyone, regardless of if it’s captive or not, same price as you’d get, if you call them directly. And offer you those exact same prices.

but we shop all these companies. And so whichever one comes back at the lowest price, that’s what we extend to you to save you money. So that is what most people like to do.  it certainly is what I encouraged my own family members, my closest friends that they go that route. It’s not only a huge time saver, but ultimately it is the best way to get the best price, the highest rated insurance company.

And it’s going to protect your loved ones the best way possible when you pass away or getting certain medical diagnoses. And also it’s the best way to.  expose yourself as you’re going through the shopping process, expose yourself to how do these different programs stack up against each other, and you can ask an unbiased, impartial party, and that would be your agent or the agency that you decide that you want to work with.

So I hope that’s helpful. Please reach out to us, let us know, however else we can help you and stay safe out there.