Life insurance was established in ancient Rome as a Burial Club that provided burial expenses to its members for a premium fee. Since then it evolved to the sophisticated products that we see these days.
Even though, the products that we see today are not as simple as the ones they had in Rome, these products function in a similar way. They come to replace the financial need when a loved one had passed. Life Insurance provides your designated beneficiaries funds to pay for final medical bills, funeral costs, mortgage balance, credit card debts, living expenses or any other needs – typically tax-free.
Different coverage fit to different need, that’s why we have so many different products out there.
Whole life insurance policy (called Final Expense coverage as well):
The whole life version of life insurance, is simple and straight forward. It has a determined death benefit, with LEVELED premium. As long as the premium is paid, the policy is in forced. Coverage cannot be cancelled, or changed, because the client is getting older, or developed medical problems. Death benefit is paid tax free. Policies build up cash value along the way, which can be used before the person dies.
As the name suggests- it is a life insurance plan that covers a person for a determined time frame. It can be anywhere between 5-50 years. It has a leveled death benefit, most of the times, and does not build up cash value. Perfect way to cover a debt (like mortgage protection), or to make sure your kids will go to college if the worst happen.
It is a life insurance coverage that will activate if the insured passed from any reason except medical. These are usually cheaper plans, and can be add on any plans someone currently has. Great coverage to have if the insured is a driver/truck driver.
Guaranteed Issue Plans:
People with severe medical issues usually cannot get insurance coverage. We have the solution for them with a Guaranteed Issue Insurance policy. These type of policies will not have any health relate questions. They are a bit expensive, but still a good solution for someone that cannot get anything else.
Every type life insurance plan has some type of Riders that comes with or can be purchased as add on. Life insurance Riders can very base on purpose. The most common types are:
1. Accelerated Death – Allows to use some or all of the death benefit before the insured die, if the insured develop Terminal Illness, Critical Illness, or Chronic Illness. Each type of illness will allow for a different amount of the death benefit to be used. (Very by plans and type of insurance). With a lot of plans, this rider comes without additional cost.
2. Accidental Death – works as an accidental death policy, which will add a certain death benefit if the insured passed because of accidental death.
3. Children Rider- covers the insured children with a term policy until they reach the age of 21. Very attractive for families with 3 or more children. Coverage usually start with 5K/child up to 25K.
4. Disability Income Rider- Will provide an income if the insured got hurt and did not die, but lost the ability to work (temporary or permanently).
5. Waiver of Premium do to Disability – As the event that the insured become disabled, the insurance company will pay the premium on the insured behalf.
Please click here to have one of our skilled agents contact you to set up an assessment appointment to see which of these products will work best for yours and your family’s needs.