Buying decisions in this category are frequently made in a single phone call or kitchen table visit. A short list of questions, and asking for the answers in writing, changes that dynamic.
About the person you are talking to
- What is your full name, and what is your insurance license number?
- Which states are you licensed in, and is the license currently active?
- Do you represent one insurance company or several?
- How are you compensated on this sale?
- What company do you work for, and what is its address and phone number?
Verify the license independently through your state insurance department rather than accepting the answer on its own. Licensed agents expect this question and are not offended by it.
About the policy
- What is the exact product name, and which insurance company issues it?
- Is this simplified issue, graded benefit, or guaranteed issue?
- If I died of natural causes six months from now, exactly what would my beneficiary receive?
- Is there a waiting period? How long is it, and what is paid during it?
- What is the face amount, and does it stay level for life or decrease with age?
- Is the premium guaranteed level for life, or can the insurer increase it?
- How long must premiums be paid — for life, or does the policy become paid up at some age?
- What happens if I miss a payment? How long is the grace period, and can the policy be reinstated?
- Does it build cash value, and what happens to the death benefit if I borrow against it?
- What are the exclusions — the suicide clause, misstatement of age, anything else?
- What riders are included, which are optional, and what does each cost?
- How long is the free look period in my state?
- What is the insurer's financial strength rating, and who rates it?
About your own situation
- Given my age and health, would I likely qualify for a fully underwritten policy at a lower cost per dollar of coverage?
- What total premiums would I pay over 10, 15, and 20 years, compared with the face amount?
- Could owning this affect Medicaid or SSI eligibility for me or my spouse?
- Is the benefit amount based on an actual estimate of local funeral costs, and how was it chosen?
If you already have life insurance
- Are you recommending I replace an existing policy? Why is the new one better for me specifically?
- What would I give up — cash value, a premium locked in at a younger age, coverage already past its contestability period?
- Will the new policy restart contestability or impose a new waiting period?
- Are you providing the replacement disclosure forms my state requires?
Do not cancel existing coverage until a new policy has actually been issued and delivered. A gap between the two, or an application that is declined after the old policy is cancelled, can leave someone uninsurable.
About the paperwork
- May I see the full policy contract, or a specimen policy, before deciding?
- Will you put your answers in writing or email?
- What exactly am I signing, and what does signing commit me to?
- When and how will the policy be delivered, and what should I check when it arrives?
- Who do I contact at the insurance company — not at your agency — if I have a question later?
Reasons to stop and verify
- Pressure to decide today, or a claim that an offer expires immediately.
- Reluctance to provide a license number or name the issuing insurer.
- Any suggestion the caller is from Medicare, Social Security, a state agency, or "your benefits department." Government agencies do not sell insurance and generally do not make unsolicited calls about it.
- A request for a Social Security number, bank account, or payment details before you have seen anything in writing.
- Coverage described as "free," as a government benefit, or as something you are automatically entitled to.
- Being discouraged from involving a family member, advisor, or your state insurance department.
- A mailer designed to look like an official government notice, or one referring to a "final expense program" in your area.
- An agent who suggests leaving something off the health questions.
None of these individually proves wrongdoing, but each is a reason to slow down and verify before going further.
What to do after buying
- Read the delivered policy during the free look period and confirm it matches what was described.
- Tell the beneficiary that the policy exists and where the documents are kept.
- Keep the insurer's contact details somewhere separate from the agent's, since agents change.
- Review the beneficiary designation after any major family change.
- If you decide the policy is not right, act within the free look window rather than after it.
Where to report a problem
Your state insurance department handles complaints about agents and insurers and can confirm licensing; find yours through the NAIC directory. Suspected fraud can be reported to the Federal Trade Commission at ReportFraud.ftc.gov. For concerns about financial exploitation of an older adult, the Eldercare Locator at eldercare.acl.gov connects to local Adult Protective Services and other resources.
General information only
This list is general and not exhaustive, and it is not advice about any individual's circumstances. Senior Benefits Central does not sell insurance, cannot recommend an agent or insurer, and cannot review a policy or answer questions about existing coverage.