Category: life insurance quotes

AARP life insurance simply much more expensive

by

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

The problem with cheap term and internet quote factories

by

January 6, 2012

11:47 AM

Leave a comment on The problem with cheap term and internet quote factories

Conversion, life insurance quotes, term life rates

Term quote factory

For cheap term, go online, Google “life insurance quotes”, click on the top search engine results, land into a life insurance quote factory, get the cheapest quote, talk to an agent briefly, get an application package by mail. Apply. Done.

Too bad the agent, having a different set of priorities, didn’t recommend the right carrier.  To give an example:

 Mr. Enterprise, age 46, with two children, wants a 20 year $500,000 life insurance policy in case something happens to him before his children grow up and graduate from college.  He goes on line and gets the cheapest term possible.

The years go by. Mr. Enterprise has had a successful career but gained weight and didn’t exercise.  At 63, he suffers a mild heart attack.  At age 66, his 20 year term period is ending, Mr. Enterprise would like a $100,000 permanent policy for estate planning, but his term carrier only offers one very expensive and limited universal life conversion option.

This is a better scenario:

Mr. Foresight, age 43, wants a 20 year $750,000 life insurance policy to cover his family to replace lost income in his working years, but also thinks ahead for estate planning contingencies.  His agent recommends two term carriers for conversion:

Genworth because “Term UL” has a guaranteed fixed rate universal life extension.  During the term period or when it ends, one may lock in that fixed rate.  The rate is fixed at the issue date.   That’s 2012 rates.

North American because of their excellent conversion options for Indexed Universal Life.  Mr. Foresight would really like to start permanent policy in the next few years to build cash value, but can’t swing it right now.

Mr Foresight decides on getting two policies: a $250,000 term with North American and a $500,000 term with Genworth.  When ready to get a permanent policy, if healthy he can shop for the best available on the open market.  However, if he has developed a health problem, he can go with either Genworth for the fixed UL rate or North American’s Indexed UL for building cash value, or both.

Term life insurance has two elements:

  1.   coverage during the term
  2.   options for permanent: that’s called conversion

Placing a quote request on a generic online life quote website could lead to an agent with a focus on the quickest sale, someone with no real knowledge of permanent life insurance, and possibly not authorized be your agent of record or for permanent life insurance.

Sometimes it may work out regardless.  With Genworth low price and high quality dovetails, but many other carriers like North American, Lincoln, Penn Mutual and Prudential would never make it into the discussion because their term premiums are a bit higher.   Unless you’re already all set for permanent life insurance, make sure you choose term insurance with permanent in mind.

Image source:  Wikipedia Commons