With one-third of households still without adequate life insurance, statistics show, consumers prefer to deal with online life insurance agents for affordable policies.
After 9/11 occurred, consumers still questioned the value of insurance policies. Sales increased about three percent. The fact remained; policies did not give enough protection and were not transparent enough to attract consumers. In steps the online insurance marketplace and consumers now appreciate the range of choices, especially for senior citizens. Read also: Things you Really Need to Know about Senior Life Insurance.
Not too long ago, aging seniors had a deadline to meet when purchasing insurance policies. That has all changed and online options make it possible for seniors over 60 to choose from a bevy of choices that include more advantageous affordable plans, among several competing insurers.
For years, consumers have chosen policies that did not completely protect them from anticipated losses. Consumers would pay, pay, and pay, only to find the devil was in the details – overpriced policies with little coverage. This has more to do with consumers dealing directly with captive agents who work for one insurer.
One of the biggest disadvantages in the insurance arena is dealing with agents that offer one type of policy. Captive agents represent a single insurer and in some cases, they are an employee of the insurer. Many times, families are familiar with a particular company and feel more comfortable dealing with the same agent. However, these agents are limited to offering policies offered by their company. Read also: Why Seniors Need Life Insurance?
The captive agent’s method of marketing insurance, particularly life insurance policies, obviously has been very successful. However, seniors are at a disadvantage when solely using captive life insurance agents because they are not considering lower costs from other companies.
Majority of People Miscalculated Insurance Needs
Most people overestimate the costs and their requirements for insurance, and seniors mistakenly believe they are limited in options because of their age. As we age premiums will normally fluctuate according to exclusions, benefits and terms and conditions; however, by comparison shopping at an online insurance marketplace, seniors now are able to check insurance plans, while remaining cost-conscious. Most seniors are unaware of the coverage they need and this can spell danger when purchasing a plan.
- Term life insurance has decreased by almost 40 percent or more in the last few years. The real question is how much insurance do you really need? Term life insurance provides coverage for a specific limit, for the term of the policy. There is no cash value or investment component and the premium remains fixed throughout the term of the policy.
- Whole life insurance is an option but not the best choice for seniors over 60. Whole life policies have two components; a guaranteed death benefit and a savings account. In the event of a death, the beneficiary gets the death benefit plus any accumulated cash value. However, the savings is a low-yield, and if purchasing this type of plan after 60, you probably would not have much dividends paid back, unless a insurer has raised their characteristics of the plan.
Comparison shopping finds the hidden savings
For years, insurance advocates have advised seniors to “do your homework.” These online insurance marketplace are providing the best avenues for due diligence. There is no reason seniors cannot find affordable insurance plans, within their retirement budget, and at any age. Read also: Life Insurance Rates for Seniors.
When senior’s comparison shop, they are able to review the underwriting guidelines and any restrictive terms without any pressure. This in itself is an advantage since insurers are more willing to modify policies when it is clear they are competing for business.
- Competing quotes offer seniors broader or lesser coverage with flexible premiums.
- Comparison shopping makes insurance plans more transparent for the buyer.
- Seniors get to see the bottom line, from each insurer.
A Fair Playing Field
The online insurance arena has created a fair playing field. Seniors are able to utilize a complete marketplace, complete with competing life insurance agents and compare price, providers, exclusions and all provisions detailed in the plan’s guidelines. This form of marketplace makes it easy to choose an affordable plan that suits individual needs. No longer are individuals overwhelmed with blanket policies because this online arena allows for better deals. Read also: Your Guide to Understanding Life Insurance Quotes for Young Adults.