Life Insurance Payments Going Up?

Do the initials AARP equate to total trust? Chances are very good that you have gotten something in your mailbox from AARP and then you probably also have seen their ads in TV or print. Many feel like because they are such a well know company, they can trust them. But oftentimes folks find themselves wondering why their life insurance payments are going up.

Yes, they sell Final Expense Burial Insurance.

But first you need to know this about AARP …

AARP is NOT even an insurance company.  They use someone else to do the plans … New York Life.  They outsource.

Not that New York Life isn’t a good company, they are, it’s just that they outsource the insurance they sell.

AARP is nothing more than a marketing agency.  Someone in their high offices must have thought years ago, we have all of these older Americans we mail to, let’s sell them Life Insurance.  For them, it was a very smart idea.

And from what many understand, millions have taken them up on the offer over the years.  They are one of the most successful re-sellers of life insurance for burial on the planet.

The TWO big problems with some of the AARP policies …

  1. Every 5 years the rate you pay goes up leading to higher and higher life insurance payments
  2. The life insurance can expire at age 80

Those are two VERY BAD things … think of how many folks you know over the age of 80. Then think that they could have been making life insurance payments into their AARP policy for up to 30 years and collected or their loved ones will collect nothing.

This is crazy.

But folks buy it because they think they can trust AARP. 

Years ago when I was just a rookie in the business and was doing the door to door thing (a painful process), I came upon a very nice lady in Mesa, Arizona that had purchased a policy 15 years earlier. In all fairness, I can’t remember who she bought the insurance from.

She showed me they had sent her and like many of the policies that are mailed to you days after signing up, it looked very slick and professional.

I started to read through it and couldn’t believe what she had agreed to. Every 5 years the life insurance payments increased. And worst of all, as someone turned 70 and beyond, the rate hikes become drastic. I think by the time you turned 80 the payments annually were like $19,000 per year.

Now I’ve seen policies with increased annual life insurance payments before (none of them are good in my opinion), but I have never seen a policy with increases like this. It was almost comical.

The idea was simple. Make the person cancel, so all those years of payments into the policy were wasted. Free money for the insurance carrier while you never had any coverage at all unless you died a few years after taking out the policy.

And yet, even as bad as this was, some folks don’t understand how badly they have been advised.

I expected the woman to be furious with what she had purchased. She wasn’t. I think she thought all insurance was supposed to work that way.

She said a very nice gentleman sold it to her (he had come to her house) and while his cell number had been disconnected, she had nothing but the nicest things to say about him.

Ughhhh … This was all so wrong.

First of all, those monthly life insurance payments should never go up by a dime, whether you live for another 2 weeks or if you beat all the odds and live for another 50 years.

Second, the benefit should never change (the amount paid out to your beneficiary when you die). It should be fixed in stone.

Period … I cannot say this enough times. The problem is, many of us have this morbid view of our own lives thinking we will die young, so the rate increases really won’t effect us. Then we end up outliving anyone in our family and that “door to door” bought insurance turns out to be worthless.

Now I know I sound brutal towards “door to door salesman” selling insurance. In truth, some are quite good. Some are actually great. They have years of experience and don’t mind driving around and knocking at doors and while I really don’t understand how someone can physically do that grind year after year, I do know that some folks can.

The problem is MOST “door to door” folks are ROOKIES. They don’t know what the heck they are doing. They should be looking for another line of work. And because they drive around so much and knock on so many doors, they end up talking to a lot less folks than we do.

And then the carriers, the insurance companies themselves …

Insurance is something that seems so simple at it’s face, but sadly some carriers have included so many tricks and catches, that you are really buying practically nothing at all.

But with all of my warnings, insurance is easy to do correctly (lucky for you, you have stumbled onto these reports). Find someone with experience. Order your insurance with them on the phone in 15 minutes vs. the 3-4 hour marathons that take place when someone comes to YOUR house.

READ articles written by experts !!! …

The reason I (Gary P. Cubeta) write so much, is so that our clients can get educated and make the right decisions before we get on the phone. No, I don’t expect you to know exactly what policy is best for you, but I do expect you to understand a few of the pitfalls of buying the wrong policy.

For example, the rate going up over time or the benefit going down over time. Or worst yet, both happening in ONE ugly policy.

And yes, you reading a bit makes our job easier in the end, because you are ready to go when you call and we can handle in 15 minutes, what a “sit in your house until you buy agent” can take 4 hours doing.

Plus with us, you WILL get the correct policy.

Cheaper … and with better coverage and from an A rated carrier that has in most cases been in business over 100 years like Mutual of Omaha and survived the Great Depression of the 1930’s.

These carriers are GOLDEN. When you die, even if you had a policy of $10 million plus, the benefit could be paid in days. The financial assets these companies hold is beyond the ability of our minds to understand.

They are SOLID.

So this is why I took thousands of hours to write all of these reports. You don’t have to read all of them, just a few and you will get a good idea of what you need to do to protect your loved ones in case of your death.

These are my opinions from years of experience. The door to door guys are just trying to earn a living. A few of them are VERY good. Most of them are not so good.

The great thing about these reports is it tips you off as to what to watch out for. Best idea is to fill out the quote calculator to the right of this page and see what some of the superior samples of coverage will be cost-wise for you.

Gary P. Cubeta
(Serving Americans In All 50 States)