Here I go again busting another urban myth propagated by life insurance companies and organizations that people over age 50 should quit taking life insurance exams and start turning to smaller, over priced life insurance policies. Honestly in the feeble minds of groups like AARP they would have you believe that it is in your best interest to not only pay too much, but be priced completely out of the life insurance market by age 80. It’s no coincidence that they want you to opt for dropping your life insurance about the time you are most likely to be needing it.
The truth is that approval isn’t based on age. Rates get higher with age but approvals are based on health, not age. Working with business partners I was able to get the older of the two, age 78, approved at the best rate class, a home run for their buy/sell agreement. Even one rate class difference would have meant $20+ thousand more per year. But the fact was he was healthy at age 78 using the same measures of health that a 38 year old would have to show. So life insurance in the 50’s, 60’s and even 70’s at the best rate is still a very real possibility with good health. Far too many of us elderly folks settle for guaranteed issue or simplified (no exam) life insurance due to the fear of age and exams, a fear that is marketed to us.
Exams and your medical records are almost always your friend and your way to better rates. When life insurance underwriters can see the full medical picture they’re a lot more comfortable approving a better life insurance rate class. It is the lack of a full, clear picture of your health that gives rise to guaranteed issue life products. The companies that offer the simplified and guaranteed issue products hope they can instill a fear that because of age or health issues you are better off keeping your health off the table. I’ve demonstrated over the years that this myth can steer you to higher rates for less life insurance.
How can they do that I asked on behalf of all of you? They make it available to all by combining super high price, generally paying its’ own death benefit in 8-10 years along with no benefit in the first two years of the policy. Or with AARP they raise your rates every five years until you are 75 and then the only option to continue your life insurance is a very expensive whole life product that would be a show stopper for anyone on a fixed budget.
Bottom line. Most life insurance customers in their 50’s and 60’s and 70’s can qualify for, if not the best rate, a good rate. I highly encourage going with fully underwritten life insurance. Do an exam. Answer the health questions. Let them review your medical records. If you have any questions or would like to discuss how much lie insurance and what rate you qualify for, call or email me directly. My name is Ed Hinerman. Let’s talk.