Everyone wants the most coverage for the lowest price. However, you have to be careful with term life for seniors. The appeal of these plans is their initial price. They are often the cheapest option when first purchased. However, the premium rates are not locked in like whole life. Instead, consumers will experience a premium increase every five years. If the consumer can somehow afford all the price hikes, the policy automatically cancels at age 80, 90, or 95 (depending on the company). Whole life may be more expensive at first, but you will eventually save money with having a locked in rate. Meanwhile, your neighbor who has a term life product looks disappointed because a premium increase just showed up in the mailbox.
Be careful of slick advertising that spends most of its focus on price. That should be a red flag. A focus on price is a way to divert attention from the product’s disadvantages. Check out quotes for simplified issue whole life where you will see policies that don’t go up in price or cancel at a certain age.
