Category: 10 year term

AARP life insurance simply much more expensive

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June 14, 2013

12:00 PM

Leave a comment on AARP life insurance simply much more expensive

10 year term, 2013, 66 years old, 67 years old, full underwriting, guaranteed acceptance Whole Life, guaranteed issue whole life, guaranteed universal life, In your 50's, In your 60's, In your 70's, life insurance quotes, no blood test, No Lapse Guaranteed Universal Life, no physical exam, Permanent Life Insurance, preferred rate, Simplified issue whole life, standard non tobacco rates, Term Life Insurance, Underwriting, universal life policies with secondary guarantees, whole life vs. universal life

Charles_Napier_Hemy_-_A_Nautical_Argument_1877

I first posted about AARP’s high priced life insurance program two years ago. Has there been any reform to that profit mill taking advantage of seniors?  No.  AARP member options are only among the most expensive.

AARP now promotes “The AARP Life Insurance From New York Life” on a separate website.  It’s “exclusively for AARP members.” Their mission statement: “To help make it simpler for AARP members to apply for affordable life insurance protection, AARP selected New York Life to provide a life insurance program just for its members.”  (italics mine)

simple = more expensive

The AARP New York Life insurance web page has three choices, all of them no physical exam, i.e. paramed exam.  Simple.  Higher priced simplicity.

Are you in good, average or even slightly below average health?  Focus on fully underwritten life insurance requiring a paramed exam. It’s free, at home or wherever you choose at your convenience, takes about 20 minutes and saves you a considerable amount of money.

Best value in rapidly descending order:

  1. full underwriting:      paramed exam
  2. simplified issue:      no paramed exam
  3. guaranteed issue:   no health questions

Unsure if qualified for fully underwritten coverage?  Find out. You’d be surprised. Type 2 diabetics with good control can get standard rates. Always check first before applying. Even if a simplified issue product is advisable, shop around for the lowest prices. There are much better deals than those offered through AARP.

Doubly more expensive permanent

For example, $25,000 permanent coverage female 66 years old, monthly premiums

$70.00     Transamerica at preferred non-tobacco, GUL*, age 121
$74.00     Transamerica at standard non-tobacco, GUL*, age 121
$127.52    AARP Life Insurance program from New York Life, age 121

Why would an organization, supposedly acting in its members best interest, not promote fully underwritten life insurance options?  How about: ease of issue, faster turn around, lower labor costs, higher premiums, higher profits.

Term:  At your age?

Term is to replace lost income or to cover a debt like a mortgage. If there is a shorter duration need, term life insurance might be suitable, but generally retirees should get permanent life insurance for estate planning and final expenses, not term.  Outlive the term period, and there’s zero benefit.  If for some reason term is needed, get fully underwritten coverage. No physical exam term is much more expensive. The AARP program term rates are five-year age bands: e.g., 65-69, 70-74.  Tiered rate term insurance is an inferior product and much more expensive. Level premium term is the best. The rate is the same for the entire term period.

Please contact me for a free and confidential quote.  Many more options available.

sean's profile picLicensed Agent:  Sean Drummey
phone: (910) 328-0447
email: spdrummey@gmail.com

* Guaranteed Universal Life (GUL), also called no-lapse Guaranteed Universal Life, look for lifetime no-lapse guarantee level premium to age 120 or age 121; three major life carriers have GUL products starting at $25,000.

Product and carrier details:
Transamerica Life Insurance Company: “TransACE”
Genworth Life Insurance Company: “Colony Term”

quotes 6/14/2013, rates subject to change

Life insurance: needed and inexpensive

by

January 24, 2013

1:42 PM

Leave a comment on Life insurance: needed and inexpensive

10 year term, Age 60, In your 40's, In your 50's, level term, preferred best, Preferred best rates, Preferred Plus Rates, preferred rate, rate classifications, standard, Standard Plus, term, term life rates

Morning Interior Maximilien Luce, 1890

My American consumers evidently have a limited understanding of life insurance, but life insurance is really not all that difficult.  A competent agent can explain the basics in a few minutes.  Most people need term life insurance which for most is inexpensive and has a fixed rate for decades.  For example age 50, $250,000, 10 year term is $21.12 a month at preferred plus and $38.35 a month at standard; age 60, $250,000, 10 year term is $43.09 at preferred plus and $75.38 a standard.

It boils down to recognizing the need for coverage.  Does someone depend on your income?   What would happen to your children or spouse if you died?  What are your family’s needs for estate planning?

It’s hard to consider one’s own death, but that becomes easier as you get older because people you know start dying.  This usually starts in high school and accelerates in your 40’s and 50’s.

Applying for life insurance, even if you regularly see a doctor, gives you a broader understanding of your health.  Life insurance, fully underwritten, the least expensive kind, requires a blood test and often a review of medical records, all at no cost to the applicant.  The carrier then determines a risk classification: preferred best, preferred, standard plus, standard or substandard.  It’s objective with measurable criteria.  That decision can be very revealing because often doctors do not adequately inform patients of their risk, and people often do not know or adequately understand the state of their health.