Can I Afford Coverage on a Fixed Income?
About a year ago, I received a call from a 63-year-old woman living in Texas. When I answered the phone, she was very specific about what she wanted. She didn’t want to go over any of the details of her situation. She simply wanted a price quote for a $25,000 senior life insurance policy.
As an agent, I generally don’t like to discuss pricing before we’ve gone over the details of an individual’s situation as well as the basics of the type of policy they’re considering. However, she was pretty adamant, and I didn’t want to upset her.
After I quoted her the price, I could tell she was offended. She responded and said she was on a fixed income and that the price was entirely too expensive for her budget. I could sense that she was about to hang up the phone, so I quickly asked, “Have you considered a smaller policy?”
She paused for a second and then replied, “I didn’t realize that was an option.” Since she was on a fixed income, she was calling around to find the lowest price. It turns out that multiple agents had informed her the lowest price policy available was $25,000.
At this point, she began to open up, and we were able to go over various options. She selected a burial insurance policy from a top-rated company for $7,000, which cost her $31.33 a month. This policy was the perfect fit for her situation as she simply wanted to ensure that her family would not be left to pay for her burial cost. She was extremely happy to find an affordable option and thanked me very much.
This situation illustrates a common problem that we deal with as insurance agents. Oftentimes, people assume because of their limited or fixed income that they cannot afford coverage. So I thought we would take a look at three tips for finding and purchasing a senior life insurance policy on a fixed income.
The first tip is very simple — set a budget. It’s important to find your comfort zone for the required monthly payment and then do your best not to exceed it. I often advise clients that the best life insurance policy to purchase is the policy you’re comfortable paying for. If you set a budget now, it could prevent you from having to cancel the policy in the future.
The second tip to finding a senior life policy on a fixed income is to adjust your expectations. Be realistic about the type and size of policy that you select. Though the policy may not fit your original intentions perfectly, don’t let that keep you from purchasing the policy. Some life insurance is better than no life insurance, and it can reduce the burden on those left behind when you pass away.
The final tip is to partner with the right agent. This is very important because you want to ensure that the agent assisting you has your best interest in mind. Not all agents are the same. So if you feel uncomfortable for any reason, it is your right to walk away.
Hopefully, these three tips will guide you when purchasing a senior life insurance policy on a fixed income. If you set a budget, adjust your expectations, and partner with the right agent, you should not have a problem finding a policy to fit your situation. If you would like to explore life insurance policies that are available, feel free to speak with one of our agents. We are licensed throughout the country and would be glad to answer any questions or concerns that you may have.