Seniors and Life Insurance Scams
Seniors and Life Insurance Scams in General Life Insurance
In recent news a Florida man has been arrested for taking millions of dollars from senior citizens in a life insurance scam.
What’s disturbing about this case, aside from stealing the hard earned money of senior citizens, is that he wasn’t a door-to-door salesman.
This scam artist worked for a financial group.
So why do seniors need life insurance, and how can they make sure they don’t get scammed by creeps like that?
Actually, there are several reasons why seniors would want life insurance. Some of them want to leave tax-free funds for their families when they pass on, others have debts to pay off, or want to cover their own funeral expenses, and some are even raising grand kids who will need financial support.
But finding a low cost policy as a senior can be difficult. The best thing you can do is spend as much time as possible reading about term life insurance, whole life insurance, and all the variable policies out there.
Then, shop around to many different agencies.
In some cases seniors will find that term life insurance won’t be extended to them, or to anyone over the age of 65 or so.
In other cases it will be available, but more expensive.
Whole life insurance will likely be available, but remember that in order for it to pay off whole life insurance needs to be kept and paid for at least 10 years, 15 if possible.
And remember, if it sounds too good to be true it probably is.
Things to ask include:
Is policy renewal guaranteed for this life insurance?
What are the renewal requirements?
Will there need to be a medical exam?
Will premiums be fixed or will prices go up with time?
How long will it be before the beneficiaries of the insurance policy can get death benefits? (In some cases it takes 3 years of payments before the insurance payout is guaranteed)
Finally, will the premium be waived in case of injury and disability?
With careful planning and selection a good life insurance policy can help a senior citizen feel that their loved ones are protected if and when they die. Sadly many scam artists take advantage of those good intentions, but there are also many, many good insurance brokers who will be happy to help you find the policy you need at a price you can afford.