More certain than paying taxes, we’re all gonna go sometime – it is the inevitable. Having researched final expense insurance and many companies that provide this Whole Life permanent product, the companies mentioned below are what I believe to be the WORST. In comparing them with the carriers I work with, I would NEVER suggest one of them to my clients!
These are the five companies that are the major players in the final expense arena. They are made popular but television commercials and direct mailers. Although these products have other significant problems, one is that they are more expensive most times. Why do you think that is? Because they have to PAY for those commercials and mailers!
The main problem with these companies is that they push life insurance products that are not in the best interest of a healthy person. If a person’s sick, it’s a different story. BUT they are NOT the only carriers out there that offer policies for less healthy older persons.
Globe offers term insurance, ending at age 80. Their price also goes up every 5 years or so. Most of my older clients want Whole Life Insurance and when they learn Globe Life is term, they usually listen to me and appreciate my advice.
AARP has two types of insurance.
The first is a policy that ends at 80. When it ends at 80, the price goes up and goes up every five years thereafter (just as with Globe.)
The second policy requires that all new clients wait two years before there is actual coverage. That means the client pays two years before they are covered for the full face amount. These are modified policies and most carriers have this in their bag. Modified (because of the increased risk of a less than healthy older person) is usually paid out at 110% of premiums paid into the policy if one passes within the first 2-3 years. Read the fine print.
Mutual Of Omaha
Mutual of Omaha sells a policy through the mail that is modified, which means there is a two year wait for full coverage. Again, this is not a good idea for healthy people.
Colonial Penn has a huge TV presence with lots of commercials and advertisements. They are a solid company. However, the product they push is term and the price also increases every 5 years or so. Once again, most seniors don’t need nor want term. Most seniors today and in the future are going to live past 80.
Physicians Mutual and Physicians Life
If you bought this through a mailer, it’s a modified policy with a two year waiting period for full force.
Those are the five main companies you are going see out there. If you have one of these, allow me to take a look at it. I may be able to beat the price. And, you never know, if you cancel your old policy and it was a policy in which it accumulated cash value, you might get the cash back. I recently had a lady cancel her policy and receive $5000 back. In this case, I told her that if she put the $5k into a single premium policy, it would be worth $9k and she would never have to pay another dime of premiums. Single premium is a whole different ballgame and there are fabulous products out there to be set up with. Ask your favorite, trusted insurance agent! Or, ask me! I’d love to help!
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(c) 2014 D.C. Brown