Final expense and term life insurance offer coverage at a lower cost than other life insurance policies. They ensure that your loved ones will get the funds they need, without worrying about not being able to afford the premiums to retain coverage. But there are differences that can influence the ideal choice for you.
What Is Final Expense?
Final expense insurance lasts throughout the policyholder’s lifetime, and the death benefit is disbursed to your loved ones no matter how long you’ve held your policy.
The death benefit ranges from $2,000 to $50,000. This reflects its common use – paying for funerals, which can be between $7,000 to $12,000. However, the death benefit can be used for anything.
Premiums are low-cost, but you will pay more if you join when you are older (for example, a 35-year-old’s premiums will be much lower than a 70-year-old’s).
What Are The Types Of Final Expense?
Final expense can be simplified issue or guaranteed issue.
Simplified issue requires answering a questionnaire as part of the medical underwriting process. Guaranteed issue doesn’t require medical underwriting, and is the best choice for someone older and/or in poor health.
Why Final Expense?
If you’re older and have few options, final expense is an inexpensive way to ensure your loved ones are taken care of. There is a great benefit to buying final expense in this case. The death benefit may not be a life-changing fortune, but it still brings financial relief.
What Is Term Life?
Term life policies last up to 30 years. The premiums are roughly 10% of what you’d pay for permanent life insurance.
If you pass away while your policy is active, your loved ones will receive a death benefit, which can be as high as $1,000,000.
What Are The Types Of Term Life?
Yearly Renewable Term (YRT), level term, and decreasing term are the types of term life insurance.
YRT has no time limit. It calls for annual renewal, but costs increase over time. Level term and decreasing term premiums stay the same and last for a set number of years.
Level term premiums are more expensive than others, but the premium is based on expected costs of insurance years down the road.
Decreasing term has a decreasing death benefit, but individuals typically buy this to match mortgage costs, so that loved ones can cover remaining costs if the policyholder dies while the policy is active.
Why Term Life?
If you’re younger and have a family to provide for, term life is the better option. This is not a forever policy, but it’s a good policy for those who want to offer their loved ones significant funds upon passing.
Get The Right Policy Today!
Senior Health Solutions is here to make sure you get the best life insurance for your situation. If you need final expense insurance or term life insurance, we will arrange for you to get the one that works best for you, all at the lowest cost. Call us today at (636) 244-4415.
