Life Insurance
Life Insurance provides money, or what’s known as a death benefit, to your chosen beneficiary after you die. It can help give your loved ones access to money when they need it. Understanding life insurance can help you plan for your family’s long-term financial needs.
Final Expense
A whole life insurance also referred to as “burial insurance” or “funeral insurance.” It is intended for older adults (although encouraged for any age) to protect loved ones from the staggering costs of a funeral service, cremation, burial, and unexpected medical costs. The rates on these policies do not increase, nor do these policies expire. The average maximum face amounts go up to $35,000. There is no medical exam required.
Whole Life
Whole Life focuses on income replacement rather than end-of-life expenses, such as final expense policies. The financial need is thoroughly calculated with day to day expenses in mind such as annual income, mortgage payments, total debt costs, investment and savings costs.
Term Life
Term Life is a temporary life insurance policy. Typically geared for younger adults to provide financial protection for spouses and children in case of a death. These policies are cheaper than whole life insurance but only have term that last in between 10 and 30 years. Once this term is complete, the policy expires. Premiums can be returned depending on type of term life policy.
Universal Life
Universal life (UL) insurance is a form of permanent life insurance with an investment savings element plus low premiums. There are the advantages of flexibility, owning permanent coverage, cash value, and initial low cost. The disadvantages are that of complexity, risk, and increasing insurance costs.