Final Expense Plans
Final Expense Whole Life Insurance
Final expense insurance is designed to cover the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. Final expense insurance is also known as burial insurance. With funeral insurance, the value of your policy is proportionate to the expense of your desired funeral.
The exact cost will depend on your age. Unfortunately, the older you are, the larger the premiums. This is because insurance companies take on more risk when insuring older folks, given the fact that they’re statistically closer to death. Most people purchase 10,000 to 20,000.
Guaranteed Universal Life Insurance
A guaranteed universal life (GUL) could be looked at as a combination of term life insurance and whole life insurance. A GUL can provide lifetime coverage at more affordable pricing than a whole life insurance policy. This product may be ideal for individuals who want lifelong death benefit protection, but don’t need the cash value. Policies have guaranteed death benefit amounts with an option to decrease your death benefit if needs change and potential return of premium.
As long as you pay your planned premiums to keep your policy active, your beneficiaries will receive the guaranteed death benefit when you die.
This allows a larger policy face amount at a lower price than a Whole Life Plan.
Guaranteed Issue Plans
Guaranteed issue life insurance solves specific problems for certain people.
You may also see it called guaranteed acceptance life insurance.
The main selling point of guaranteed issue life insurance is that you can’t be turned down for it. There’s a simple application that doesn’t ask any medical questions.
Guaranteed issue life insurance does not pay death benefits during the first two or three years the policy is in force, but it does return the policy's premiums plus 10% interest if the insured dies during this period.
There are some plans that pay 25 percent in the first year and 50 percent in the second year and then the full amount.
Children/Grandchildren Plans
A whole life insurance policy can be a great gift for children and grandchildren because it can last a lifetime. As long as the premiums are paid, a whole life insurance policy provides a death benefit, builds cash value each year, and you could possibly give your children and grandchildren a head start on their financial future.
Premiums will never increase the life of the policy.