Buyer beware? Don't fall into the trap by buying a one-size-fits all life insurance policy.No medical history required. No one turned down. No worries, right? Not so fast.
It's important to sign up for life insurance. But, it shouldn't be an impulse buy nor too simple to obtain. If it seems too good to be true ... it probably is. Take some time to do the research and make sure you double check the policy's terms and conditions.
Bottom line: it's a bare-bones life insurance policy. It's not an investment so there's no cash value built up over the years.
On the surface, the one-size-fits-all policy sounds appealing. However, according to a Star Ledger article, it gets ugly after consumers start to dig deeper.
"When you buy a one-size fits all insurance policy - where the company is agreeing to cover everyone who clicks on an email, calls its phone line or responds to a marketing pitch- you're going to get a high-cost policy," the paper reports.
A healthy person will be treated as if he/she has significant health risks, because the underwriting assumes that if you could save a lot of money with a different policy elsewhere, why would you take on this kind of coverage?
Although Globe Life may work well for someone in their 50s, the closer a person is to 80 the less valuable their policy is, and the more likely a person is to let things lapse. There's no guarantee of a death benefit. This isn't stated in print of course, and according to a Star Ledger article it is not easy to get an answer about cash-value or the length of the term.
Need help navigating through the complexities of selecting the right life insurance policy? Let Consumer United do the work for you. Contact our expert Aaron B. at 617-209-4299 or e-mail him at Aaron.Biedrzycki@consumerunited.com for a quote.
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