If you’re flipping through channels on any given afternoon, you may undoubtedly come across various advertisements geared towards older retirees promoting life insurance policies. Oftentimes, these ads may include celebrity spokespeople and appealing incentives; however, many experts warn consumers about the potential of getting ripped off when opting for unreliable life insurance packages for older citizens.
Life Insurance Schemes: Looking for the Warning Signs
Accepts Anyone-With No Medical Questions or Exceptions
A life insurance plan that promises to provide coverage without asking any medical questions should usually stand out as a company that needs to be questioned. Often known as “guaranteed issue policies,” these life insurance packages are advertised to be sent directly to your home once you send in your payment. While these policies may certainly provide benefits for many individuals, some policy holders commonly confuse these “guaranteed issue” with “quick issue” and / or “simplified issue” policies. If you find yourself opting for a “guaranteed issue” life insurance plan, then you should be aware that this form of coverage should only be reserved as a last resort. “Guaranteed Issue” policies offer fewer benefits and come at a much higher price than companies that require a physical exam and / or a brief report of your medical history.
Don’t Get Caught by a “Catch”
To gain greater profit without loss, many life insurance companies may include various “catches” in their coverage agreements. For example, while the life insurance policy may agree to cover all funeral costs, the policy may include the “catch” that costs will only be covered if a funeral occurs prior to the age of, for example, 75. In this case, if you live beyond 75 years, then you’re insurance investment for your funeral may be a complete loss.
Consider the Long Term Benefits
Some life insurance plans provide policy holders with “graded benefits,” which essentially gives the insurance provider greater power over adjusting the terms and costs of coverage. With “graded benefits,” insurers are permitted to simply pay refunded premiums for up to 3 years after the purchase date of the policy. With this power, an insurer can simply offer a 3 year refund instead of the full policy benefits / payments upon the death of the policy holder.
