HOW CAN LIFE INSURANCE HELP YOU
MAKE PLANS FOR WHEN YOU'RE GONE?
Whole life final expense insurance—also known as burial insurance— covers the bills that your loved ones incur just before and after your death. These costs may include medical bills and funeral expenses.
The value of your burial insurance policy is comparable to the expense of your desired funeral. Typical
burial insurance policies are worth $10,000 to $20,000. The exact cost of the policy depends on your age. The older you are, the larger the premiums, since insurance companies assume more risk when insuring older people.
A guaranteed universal life (GUL) policy combines term life and whole life insurance, providing lifetime coverage at more affordable pricing than a whole life policy. GUL may be ideal for individuals who want death benefit protection but don’t need the cash value. GUL policies have guaranteed death benefit amounts with options to decrease the death benefit and/or have premiums returned if needs change. As long as the payments on your premiums are made, your beneficiaries will receive the guaranteed death benefit when you die. This allows for a larger face amount on your policy at a lower price than a whole life plan.
Guaranteed issue life insurance—often called guaranteed acceptance life insurance—solves specific problems for certain people. The primary advantage of guaranteed issue life insurance is that applicants cannot be turned down. There’s a simple application that asks no medical questions. This plan does not pay death benefits during the first two or three years the policy is in force. However, it does return the policy's premiums—along with 10% interest—if the insured dies during this period. There are some guaranteed issue plans that pay 25 percent in the first year, 50 percent in the second year, and the full amount thereafter.
CHILDREN + GRANDCHILDREN PLANS
A whole life insurance policy offers children and grandchildren a gift that can last their lifetime. As long as the premiums are paid, a whole life insurance policy provides a death benefit, builds cash value each year, and gives your children and grandchildren a head-start on their financial future. Plus, premiums will never increase during the life of the policy.