![]() It is important to work with a well-trained broker or agent who can talk with you to understand your goals for getting life insurance. Then they can narrow down the products most appropriate for your situation and more thoroughly outline all of the policy details with you. There are many more sub-types of life insurance and nuances to life insurance policies than are outlined above. ![]() The benefit of a term life policy is that it is often less expensive than a whole life policy for the same face value. If not, to continue to be covered by a life insurance policy, you will have to submit a new application, get new pricing and enter into a new contract. Some term life policies can be converted to whole life by a specific date. When the policyholder reaches the end of the term and is still alive, the policy expires and no one receives any money. Term Life insurance policies have a fixed term, or length like 10, 20, or 30 years. Since final expense is a whole life policy designed for the senior demographic, the premiums tend to be higher as well. Their face values typically range from $1,000-$50,000, though the average policy amount is closer to $5,000-$10,000. Final expense insurance is geared towards seniors who wish to have funds allocated specifically for funeral expenses, though in theory they could be used to pay for anything.įinal expense policies are smaller face-value whole life insurance policies. Final Expense Insuranceįinal Expense insurance, also called funeral insurance or burial insurance, is one type of whole life insurance. When the insured dies, the insurance company will pay the death benefit - also called the “payout” or “face value” of the policy - to the listed beneficiaries.īecause whole life insurance premiums don’t change as you age, the premiums are often higher than a similar face-value term life policy which expires at a specific time - more on that below. What that means in plain English is that once you sign up for a whole life policy, it will never expire and the rate will never change so long as you continue to pay the premiums - the monthly or annual cost. Whole life insurance “ is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date.” To help you understand the high-level differences in these products, we have outlined them below. Unless you are a licensed insurance agent specializing in life insurance, it is easy to get confused and overwhelmed by the variety of products available to you. ![]() ![]() opens in a new windowConsulting a professional and additional research can help determine the best coverage options for you.When planning for end-of-life, life insurance and its associated products including whole life insurance, term life insurance, and final expense insurance are products that you come across often. Protecting loved ones with life insurance is an important decision. Also, people living on fixed incomes or who do not have an estate for family to use for burial costs could be possible candidates for final expense insurance. With an opens in a new windowaverage funeral cost of $9,000, the ability to cover costs like this may be an option for applicants who do not qualify or cannot afford more coverage. ![]() These final expenses usually consist of medical bills and funeral costs. However, there is also the option of a smaller monetary policy that can be used for final expenses relating to the funeral and burial.įinal Expense insurance, also known as burial insurance, is designed to cover the immediate bills loved ones face after a death. In general, larger amount term and permanent life insurance policies provide the most coverage and protection. That’s why it’s always a good idea to talk to a professional and opens in a new windowdo your own research online. Insurance types and terms may be confusing. ![]()
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