Mike’s Life Insurance Advice

Hi James,

All too many baby boomers are now finding themselves in your situation.

Although they’re not perfect, you do have some options. How about we take a look at some of them?

The Challenge You Face With Term Life Insurance Policies

Many baby boomers bought term life insurance policies because, after comparing costs, they decided to invest the difference between their term policy’s monthly premiums and what a whole life insurance policy with identical coverage would have cost them.

If they did what they set out to do – and if they invested wisely – this strategy did work quite well for a long time. And then the stock market melted down and took their life savings with it.
This problem is compounded because many you are approaching retirement age or have maybe you’ve already retired. The reality is that the opportunity to earn additional income in the workplace is not as likely as it was when you were younger.

So now you’re faced with the unanticipated challenge of outliving their term life insurance and not having enough money to take care of their family should they die.

A whole life insurance policy may very well be out of the question. Advanced age and the inherent health problems that many older people face may preclude it as an option.

So what can you do?

Simple Issue Life Insurance Policies and Senior Life Guaranteed Life Insurance Programs

Some insurance companies now offer final expense life insurance programs that are essentially whole life insurance policies that, unlike other forms of whole life insurance, do not require a medical exam. However, there are financial limitations.

These simple issue life insurance programs will continue as long as you pay the premiums. Their purpose is to help seniors cover settling their debts, funeral expenses, and perhaps have a bit of an estate. Because the face value of many of these policies is between $2,500 and $25,000, a relatively small amount of money, many of the senior life insurance companies don’t require any physical examination.

Although a simple issue life insurance policy doesn’t require a physical, you will have to answer some health questions on the application. Don’t fear them because most seniors can qualify. For the most part, the only applicants that are declined either are in a nursing home or have a terminal illness. Smaller health problems won’t prevent you from getting this coverage.

If you would prefer not to answer any health questions at all, then a guaranteed issue life insurance policy would be preferable because there are no health questions to answer. Instead, your coverage will be delayed for a period of time – usually for 24 to 36 months.

If you do pass away during this time frame, the insurance company will refund all of your premiums and add a specified rate of interest. If you have health problems and you feel you need additional insurance coverage this is a winning situation.

Mike