I know, your age 59 and thinking, maybe I should have bought Life Insurance years ago. Or on the other hand, maybe your thinking that you should buy it 10 years from now.
But buy it now … Nahhhh
Why is now always the worst time to buy Life Insurance? It’s strange that it’s so easy to go up on Amazon and purchase something that will almost certainly end up in a dumpster in a year or two, but life insurance, oh my God, that’s the last thing some Americans want to buy.
My Dad died 3 years ago at age 87. I never heard my parents have a serious conversation about getting life insurance. Even though I’ve been in the business for years, it just wasn’t something they seemed to care about aside from my personal success.
Then my Dad passes. And suddenly my Mom starts complaining about why didn’t my Dad have life insurance. And it wasn’t a one time mention. She was like a broken record. Over and over.
She brought it up every hour on the hour and it got to the point where I was really wondering what she was thinking. I think she just want to have something to grumble about.
It’s really simple, you either get coverage or you don’t. No one is forcing you one way or the other. Some folks care about their loved ones and don’t want to leave them burdened and some just don’t give a damn.
I’m not sure which is right and which is wrong, but I know what I’ve personally done.
I have a wife that is significantly younger than me (She’s 35 and I’m 57). Now before you laugh, we’ve been married 17 years, so it’s not like this is some type of new found marriage. We get along great, even though she has a hot temper and I’m a notorious work-a-holic.
We have two boys, one age 8 and one 14. Those boys are the world to me and just about the only thing I will skip out of work for.
At the same time, I could easily take the attitude that my wife is young and pretty and if something happens to me, not only will she have our house here in Scottsdale, but everything else I’ve set aside. And oops … almost forgot to mention, she won’t have a problem getting remarried.
But I don’t take that attitude …
So Why Should I Get Life Insurance at 59 and should I buy it from Colonial Penn Life Insurance that I see on CNN daily?
Well the fact is, I do have life insurance … I have two major policies to cover my wife and kids in case something happens to me. And I have the policies because I truly believe in being covered.
Insurance is only a “scam” if you buy it from the wrong people or if you get a policy and pay for years and then let it lapse. Other than that, life insurance pays.
The one exception might be one of those Colonial Penn Life Insurance two year waiting period policies, where if you pass in the first TWO years, full benefit is NOT paid. Not crazy about those to say the least.
So what is going to push you over the edge to finally get life insurance coverage? Kicking yourself for not getting it when you were young, isn’t really going to help.
And here is the kicker. Buying insurance at a young age can actually be a very bad thing to do. Yes, Gary is going to get controversial once again, but here we go …
You see, most younger folks purchase term policies. Let’s say you are age 30 and purchase a 25 year term policy to cover your wife and kids.
It expires at age 55. If you don’t die by then, your loved ones get nothing.
Strange Twist, Young People Just Can’t Imagine Growing Old.
Since most young people don’t imagine they are going to grow old, sometimes they figure, they are just going to die young.
If folks didn’t think they were going to die young, there would be no Term policies sold. Term Life Insurance is all about you thinking you are going to die well before you should.
But guess what … most people do live past age 55-60. In fact the average life span in the United States is between the ages of 74-77.
All this leads to the fact that an estimate 94% of term policies taken out by younger people, expires without payment. The insurance company wins.
You make payments for years, and they pay out nothing. That sounds like the business to be in.
So again, this idea of buying life insurance at a very young age, actually has a dark side. 94% of folks pay in for years and get ZERO because they just keep living.
And that tends to turn them against the idea of insurance in general. When that first policy expires after all of those years, they think, do I really need to buy any more life insurance? Nahhhh.
Weird how it works …
Now of course you can purchase a Whole Life Policy when you are young, which differs from Term Life in that it goes with you until you pass. But those are pricey, and most folks end up with the far cheaper Term.
It happened to me. When I was 27 years old a friend of mine had her husband offer me such a policy.
I remember the day he came to the house. For some reason I hadn’t put my contact lenses in, so I have a very clear, albeit visually fuzzy memory of him that day.
That policy he offered me wasn’t cheap … Almost $500 a month, and that was 30 years ago. I was very nice to him, but didn’t really consider doing it.
Should I have? Probably yes, but at age 27 and single, I wasn’t really thinking about dying. And if I did die, where would the money go?
Then in 1999 when I had become a multi-millionaire many times over I was offered another Whole Life policy. It was going to cover everything I had. The annual cost? A mind blowing $22,000 per year.
I didn’t do that one either probably because I was still single. In fact I know it was because I was single because I remember thinking, at this point my folks will probably pass away and then who would I give all these millions of dollars to?
Note: No, I wasn’t in the insurance business at age 27 or later in 1999, that didn’t come until later in life after I was married (2004) and saw the importance of coverage itself. At the time I owned one of the largest rural cable TV companies in America. I’ve been blessed at being very good at many forms of business since I graduated from college in 1988.
In a crazy way, Final Expense policies are cheaper and better than those monster policies I was offered.
Final Expense Burial Insurance is actually not like those term policies that expire. It’s more like that Whole Life policy I laughed at when I was age 27, only geared towards folks over age 50.
For the most part, Final Expense Insurance is whole life, which means that it stays with you until you pass. Which is good, because when you are age 59, you really don’t know when you will pass making it so important to have life insurance in place.
And it’s also good, because those $500 payments I was asked to pay at age 27 for the rest of my, don’t exist in Final Expense. Most policies are very affordable and as low as $10 per month for $3,000 of coverage.
Sample Life Insurance Rates for 59 Year Olds:
|GENDER & RATING||$5,000||$10,000||$15,000||$20,000|
|Female No Waiting Period||$17.45||$31.70||$45.95||$60.20|
|Female Tobacco & No Waiting Period||$23.15||$43.10||$63.05||$83.00|
|Female Guaranteed Acceptance||$22.50||$44.09||$65.68||$87.27|
|Male No Waiting Period||$22.01||$40.82||$59.62||$78.43|
|Male Tobacco No Waiting Period||$29.65||$56.11||$82.56||$109.01|
|Male Guaranteed Acceptance||$27.59||$54.27||$80.94||$107.62|
But isn’t the idea of life insurance to leave hundreds of thousands of dollars to someone? These policies don’t pay out anywhere near that kind of money.
As we said earlier 94% of those big money policies expire with no payment. 100% of the policies we write for Final Expense have or will have payments made upon death.
I don’t have the official numbers, but it’s possible that the insurance carriers pay out more on Final Expense policies per dollar spent than they do with Term or Whole Life for younger folks.
But isn’t insurance a rip-off?
It’s not the Life Insurance that is a ripoff, it’s the Cremation and Burial costs that are the ripoff. When my Dad passed 3 years ago, all his friends were dead and yet even with just a few of us there, the cost for burial was over $23,000.
It’s just too much.
When you die, your loved ones will be amazed (and not in a good way) at the amount of money it will take for even the simplest of cremations. And all of this about giving your body to science and paying nothing, doesn’t really tend to work out that way. You can research that online …
Yes, you can wait and purchase coverage later in life. What the heck, lay low and wait another 10 years. But the costs are going to soar. The insurance carriers aren’t stupid. You won’t be buying coverage on your deathbed that will do much for you.
And even if you aren’t about to pass, if you come down with a condition like Cancer, prepare to pay a lot more. And then get ready for a two year waiting period. Yikes …
I’ve had folks call in who were perfectly healthy a few years back and now have so many conditions, the only way they can get coverage is with a 2 year waiting period. Most don’t even bother.
Life can be cruel.
Your loved ones paying for your death can be even crueler.
Gary P. Cubeta
(Serving Americans In All 50 States)