Life Insurance

If you are like me and many others, over age 65, this covid-19 may have you re-considering what you do or don’t have as far as life insurance is concerned. We are getting too old to buy term insurance, many of us don’t really need much insurance because everything is paid off (mortgages etc.) but we still need some insurance.

I am sure you have seen on television the ads that say you can buy insurance for “$10 a month” at any age and that it is guaranteed that you can buy it. All that is true but please understand the details. For one the $10 per month might only buy you $1,000 of insurance. For two it usually will not pay the full amount if you die in the first 2 or 3 years. They only pay the full amount after you have had and paid on the policy for those first 2 or 3 years. Now I am not saying these are bad policies, I just want you to be aware of what you are actually buying.

We, as in my office, offer the same type of policies and they are good little policies. You get to determine how much you want to buy either amount of insurance wise or price wise. In other words you can just say how much insurance do I get for $20 per month or you can say I want $3,000 or $7,000 of insurance, how much is that going to cost me per month. So we can literally help fill your need with basically any budget.

These types of policies are normally referred to as “final expense” or “burial” policies. Their main purpose is to have enough money to pay for a funeral. They are permanent policies, meaning that the price and the benefit remain the same, till the day you die so long as you keep paying the premium. When applying for one of these types of policies you will get asked a few health questions. There are a few varieties some are guaranteed issue policies but most are what are called “graded death benefit” policies which means, if you die in year 1 you only get back what you paid in plus a little interest, if you die in year 2 you might get a percentage of the face amount instead of just a refund. If you make it to year 3 and beyond then you get the full face amount of the policy.

As I said these are good little policies, as always I highly recommend that you use a local agent. It’s not going to cost you anymore. The prices do vary by company but not by much because they are all using the same mortality tables, so having someone who can help you and your heirs is important to many people.

Here are a couple of sample prices for you, these obviously change by age and health conditions but it will give you a general idea.

  • Age 65 male $5,000 of insurance would cost about $42 per month
  • Age 65 female $5,000 of insurance would cost about $32 per month
  • At age 70 male would be about $53 per month and female would be about $39 per month

Of course half as much insurance would cost about half the price and twice as much insurance would cost about twice as much. You can buy anything between $2,500 and $25,000 in thousand dollar increments so you can buy exactly what you want or what you can afford.

You might have an old $5,000 policy, most funerals now cost around $8,000 some are less many are quite a bit more. That is the beauty of these policies in that you only buy what you want or need to make up the difference between what you have and what you need. If you want a quote for your age and amount give me call at 303-776-0867.