Often when a person gets into their 70’s, life insurance choices have to be studied more carefully. In most cases there is only one term option left, the 10 year term insurance. If that doesn’t work for you, the only other practical option is a universal life with a no lapse guarantee, a cashless permanent policy.
I was reading an article about our ever changing mortality statistics. We’ve come a long way since the day when making it into your late 70’s was considered a ripe old age. Newer studies show that if you are still healthy at 65, making it to 85 or 90 is a pretty good bet.
So, back to the choice of 10 year term. This article cited the Tillinghast Older Age Mortality Study. The conclusion it came to should put a huge asterik of concern next to any 10 year term quote for someone over 70. The primary conclusion for owners of 10 year term policies was that “mortality experience through years 11-15 was 215% of mortality in years 6-10.
This is OK if you truly planned and knew that the need for the insurance was taken care of by the end of the 10 years, but if you bought it because it was cheaper, you likely made a mistake.
Bottom line. Consider carefully when you get to your 70’s just exactly what the best direction is. Don’t bust your budget, but one thing you may want to weigh is whether having $250,000 of 10 year term is better than say, $150,000 of permanent insurance. You are weighing less benefit against the risk of outliving all of the benefit.
My 20 years of experience give me the knowledge and leverage to find reasonably-priced life insurance for people who have been declined or are paying more than they need to.
My mother was sold a universal life insurance policy from Penn Mutual for 15 years. She will be 88 within two weeks. Her annual fee is 28 thousand dollars. This policy doesnot yield any didvends or interest. The agent who sold form Long Isand said it was tax free. He convinced my father to buy it for 500 thosuand so i could have it as cash upon my mother’s death. i have recenty found out it is worth 340 thousand, supposed to be used for taxes only. She has paid her yearlt amount since March 20th 2004. Since then my Dad was very ill with pancreatic cancer and died. My father was younger than my Mom. She has recently retired and has no sourch of income. I recently asked for quotes from arounf twenty insuance policies on a 90 year old woman for a 2 million dollar policy. The agents are emailing and phoning like crazy. Why is this legal? Can I do anything about the agent or insurance company. I would like to file a complaint? THX!
Lynn,
I would love to help you get to the bottom line on all your questions, including how to file a complaint. I will need more information in order to advise you.
I’m sure at this point that you probably rather not talk to anyone else if you’ve been called by that many agents, but honestly, the best way for me to help you understand what is going on is if we talk.
When you call, please have the policy available if that is possible. I promise I won’t try to sell you anything. I look forward to visiting with you.