Life Insurance Information
What is life insurance?
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.
Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term.
This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time.
For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
In contrast, permanent insurance provides lifelong protection as long as the premiums are paid.
If no loans, withdrawals or surrenders are taken, the full face amount will be paid upon death or maturity.
Since it is designed to last a lifetime, permanent life insurance accumulates cash value, which can be taken as needed and is priced for you to keep over a long period of time.
It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.
The best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.
What is final expense insurance?
Losing a loved one can be an overwhelming experience with decisions to be made regarding funeral plans. Final expense insurance covers the funeral costs of the departed, which saves family members from the stress of a large expense.
Final expense insurance vs. life insurance
Similar to final expense insurance, life insurance also pays the beneficiary upon the death of the insured. However, there are significant differences between these policies.
Life insurance often requires a medical exam and can be denied if an applicant has a preexisting chronic condition. A life policy is purchased for high dollar amounts, often beginning at $10,000, which makes the premiums higher.
There is no medical exam required for final expense insurance. Most applicants are qualified after answering a health questionnaire. The face value of a final expense policy is much smaller than traditional life insurance policies, which results in a lower premium.
What are the benefits of final expense insurance?
Final expense insurance can help your family when they need it most. Here are a few benefits to purchasing a final expense policy:
- It is designed to pay out immediately.
- Rates never increase, and benefits never decrease.
- Most people can easily qualify.
- It is a more affordable alternative to life insurance.
If you are not sure whether final expense insurance is for you, we can answer your questions.
Call us today, and we can help you protect your family’s future.
Contact us today and we will gladly guide you in choosing the plan that best meets your needs.