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Discrimination

Age Discrimination and Life Insurance

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“Age is just a number” is a common saying for people when they reach a certain age milestone. Life insurance companies agree.

In this article, I will discuss the following:

  • how age effects life insurance using a recent example of an elderly man who called me for a life insurance quote.
  • make the argument that life insurance companies don’t discriminate because of age—life insurance companies only assess risk based on age and assign a dollar figure to that assessment.
  • implore Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) to buy life insurance for their families now to avoid the “age trap” of life insurance.

If you would prefer to get life insurance quotes now instead of reading the rest of this article on “life insurance and age discrimination”, you can generate your own life insurance quotes from 20 A-rated life insurance companies (including Prudential, Banner Life, John Hancock and more), right here. Just enter how much life insurance you want quotes for, your height, your weight, etc. and you’ll be able to generate your own life insurance quotes within five minutes of your time.

(from baby boy to elderly man—the stages of a male aging)

I have specific memories of when I was six years old hopping around in my kindergarten class in treasure chest play jeans that were way too big me. My partner-in-cime, also clad in treasure chest play jeans, was my best friend at the time, Johnny. We would jump around all over the class—I assume it was recess time—into other classmates’ toys, legos, building blocks, etc. and knock them over. We thought it was hilarious—our kindergarten teacher didn’t think so. Our classmates tears at the end of one particular destructive turn put us into different classes the rest of our elementary school years. Looking back on it, our actions were mean, but then again, we were just six years old. Although fuzzy around the edges, those long ago memories that we all have—like mine in the example above—stand still in our minds, and we can access them at a moment’s directive when we choose to. Memories give us permission to time travel. Unfortunately, the physical world we live in does not warp time like the internal world of our minds—our lifetime is linear. We are born, we grow up, and we die. It’s unfair. We start getting better at the business of living when we are too old to reap the greatest rewards from the wisdom we’ve accrued. Life Insurance is just another reminder of wisdom-earned-late-in-life.

To illustrate what I’m talking about here, I’ll use an example. The other day I got a call from an elderly man who is 65 years old wanting quotes for life insurance. He wanted $500,000 life insurance quotes for his spouse. I did a life insurance needs analysis on him, I qualified his health, and I ran accurate quotes for him with the forty A-rated companies I work with. His life insurance rate came back in the neighborhood of $400 month to $600 month from the forty companies I work with. The overall rate from all the companies was all in the same ball park of one another. The man was irate after I told him his life insurance rates.

“That’s crazy,” he said “life insurance is a rip off.” And he hung up on me.

I’m sympathetic to the elderly gentleman’s plight, but why didn’t he think of getting life insurance for his family twenty years earlier when his rate for the same amount of life insurance would have been around $100 month? Did he think he was immortal? Who knows. I never got the chance to hear his grievance. He wouldn’t allow me to.

Well he isn’t immortal, neither am I, and neither are you. We are all going to die one day. It’s a part of life. Which brings me to my point:

Life Insurance companies don’t discriminate against people because of their age—life insurance companies assess people based on their age and assign a dollar figure based on that assessment. Life insurance companies access people based on their health and other factors as well, but the focal point of this article is age. All in all, one of the biggest factors that determines your life insurance rate is your age—the younger you are, the cheaper your life insurance rate; the older you are, the more expensive your life insurance rate. It’s that straightforward.

Life insurance companies are in the business of accessing risk; statistically-speaking, when you are older, you are closer to death. Therefore, the life insurance rate of the 65 year old man in the above example will be higher than a young man or middle aged-man applying for the same level of coverage.

It’s numbers, it’s statistics, it’s not age discrimination.

So, how do you avoid the “Age Trap” in life insurance?

What I mean by the “age trap” of life insurance is this: the older you get (when you are statistically closer to death) the more expensive your life insurance will be. Large life insurance policies for people in their 60’s and 70’s, like in the example above, are very expensive because of this reason. It seems unfair because that’s the time in life when life insurance for your family is needed the most, and the time when it’s going to be the most expensive. I agree. Which brings me to my appeal to members of Generation X:

  • Don’t wait until you are in your mid 60’s or 70’s, like the man in the example above, to procure life insurance for your family when starting a large life insurance policy at that age can be very expensive. Get life insurance for your family when it’s affordable and lock that life insurance rate in over a 20 or 30 year period of time through a term life insurance policy. And yes, life insurance is affordable for Gen Xers in their 30’s, 40’s, and 50’s. Getting life insurance is not something that Gen Xers should put off until it’s too late. Develop this foresight now. It will save you a whole lot of money, and it will guarantee your spouse and kids’ financial security.

I’ll get off my soapbox now.

I hope this been a helpful article disproving the misconception that life insurance companies discriminate against people because of their age. They gauge people’s life expectancy based on their age (and other factors) and assign a dollar amount to the risk based on these factors.

Furthermore, I hope I have convinced anyone reading this article in their 30’s, 40’s, and 50’s to get life insurance now—instead of putting it off—to avoid the “age trap” of life insurance.

If you are a Gen Xer who needs life insurance for your family, you can generate your own life insurance quotes from 20 A-rated life insurance companies here. Just enter your height, your weight, and how much life insurance you want quotes for, and you’ll be generate your own life insurance quotes within about five minutes of your time.

Moreover, if you would prefer to discuss your life insurance needs with me directly, email me at robert@weigelinsurance.com, message me on linkedin, or contact me here so we can set up a good time to talk.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com