Good deal life insurnace for seniors … if it sounds too good to be true, it probalby is

You have all seen the ads, low-cost, guaranteed permanent life insurance regardless of your medical condition for only $9.95 a month per unit.  Ah, the great unknown, what the heck is a unit?

old_man_cruising_on_scooter_lg_clrWell, if you are one of those seniors looking at this good deal to help pay final expenses as they say, look closely. If you want to pay for an average funeral, you are going to need a heck of a lot of units.  That’s because a unit is equal to $717 in insurance benefit. So if a funeral cost say $8,000 you have to buy twelve units at a monthly cost of $119.40  Oh, by the way, if you want that benefit to be paid, you have to live at least two years after the coverage is in effect, not that living another two years is a bad idea mind you.

So the next time you see Alex, say to him “$717” and he will reply, “What is a unit of coverage?”

This helpful hint should get you reading this blog on a regular basis, the per unit cost is zip.

And here is another hint, don’t wait until you are old and cranky like me to buy the life insurance you need. Only 44% of American households had life insurance in 2010, in 1960 that number was 72%. Who do we blame for that?

Source: LIMRAs Trends in Life Insurance Ownership study.


  1. I checked out Colonial several years ago and found out how misleading it is. They are very careful in the ad not to tell you how much a Unit is. Finally went into the website and discovered what a rip off it is. I love the ad’s though. Especially the one with the two ladies at the mailbox. The one is so sad and grieviing but perks up considerably when she discovers the check she got from her mom’s death. All of a sudden she is all smiles. So much for mom. Or the one with the family at the repose for the uncle, when the one relative says to the other, “I hope ….. can afford the funeral”. Little late, he’s dead and doesn’t have to worry anymore how much it cost.
    One would be better off putting a monthly sum in an account each month specifically for funeral costs. In a couple of years there would be plenty to handle the costs.


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