Investigation Finds Many Seniors Overpaying for Life Insurance

WTAE-TV Action News in Pittsburgh reports that insurance companies have long sold small policies to seniors to cover funeral and burial expenses. However, as people live longer, experts say policyholders frequently pay more in premium costs than their policy would ever pay out. Pennsylvania Insurance Commissioner Jessica Altman observes, "That's part of the risk being borne both by the insurance company and the policyholder." She and others say seniors and their families should discuss any life insurance policy with family members or trusted advisers before buying it. Specifically, they should check to see whether the policy has what is called a "paid-up policy option," which allows policyholders to stop making payments if they have already paid what the policy is worth.