Life and Burial Insurance
When you get right down to it, there is only one reason people buy any kind of life or burial insurance. It's because they love someone. With insurance they know the mortgage will be paid and money will be there for the children's college education. They will not leave a burden to other family members
Life Insurance
Why
Life... the greatest gift the creator gave us. From the moment we're conceived we begin the growth process. Eventually, we reach adulthood and for many of us we choose to get married. Children, may or may not, be part of the grand plan. If they are, life really changes for you!
Unfortunately life is usually not a straight line but one filled with many bends and turns and even more ups and downs. We believe we'll always be there to help raise the children or take care of a spouse. Sadly, life is not always fair. Who will be there to take care of the children? Will there be enough money to pay both the mortgage and a fund a college education?
The individuals who purchase life insurance usually do it for one reason... because they LOVE someone and are committed to their well-being.
What Benefits do Life Insurance Provide?
Life insurance can provide many benefits such as:
- Financial protection for your loved ones or your business.
- Income replacement.
- Supplemental retirement income.
- Account value growth that can be used as a financial resource.
- Tax-deferred asset accumulation.
- Efficient wealth transfer solutions.
- A funding vehicle for business owners.
What Options Exist for Life Insurance?
Life insurance can be considered an important component of your comprehensive financial strategy. The three types of life insurance we can offer you include:
Term Life - For temporary coverage
- Life insurance for a fixed period of time: one, five, 10 years or longer.
- Most economical form of life insurance.
- Guaranteed death benefit within the specified term.
- No return of investment at the end of your term.
Universal Life - For flexible coverage
- Benefits of traditional life insurance.
- Potential to grow cash value over time at a set rate.
- Flexibility to set the amount of your monthly premium.
- Flexibility to set the amount of your death benefit while the policy is in force (subject to underwriting approval).
- Earnings are not taxed until paid out (tax-deferred).
Variable Universal Life - For flexible coverage with growth potential
- Benefits of universal life insurance.
- Potential to grow the cash value over time based on market performance of an underlying portfolio.
- Ability to choose where your premiums are invested.
- Earnings are not taxed until paid out (tax-deferred).
Which type is best for you depends on what you're trying to accomplish and for how long.
Burial (Final Expense) Insurance
According to a 2010 LIMRA report titled, "U.S. Life Insurance Ownership at Record Lows", 56% of U.S. households do not have individual life insurance policies, either as a death benefit or final expense benefit.
Benjamin Franklin once said, "In this world nothing can be said to be certain, except death and taxes." You'll need one very big piggy bank to cover death. Today's funeral will cost more than just pennies, nickles, dimes and quarters. Death is a certainity, it's the timing that is the uncertainity.
Death and the process to plan for it is a subject which no one wants to talk about until... it happens to someone they know and love. Then they are forced to deal with its aftermath. If no previous planning or money set aside has taken place, a loved one or the entire family may now have to plan the funeral and someone will have to pay for all its associated costs.
It's usually at that point all the questions start to get asked. Why didn't they have any life insurance? Why does it take so long for the policy to be paid out? Is there enough money to pay for everything? Do I have enough credit left on my credit cards to bridge the gap? There are many individuals who don't believe in traditional life insurance. However, most would agree that having a small policy, designed to pay for your end-of-life expenses, will result in a burden NOT having to be placed on your loved ones.
Statistically, the average time from death to burial is about 5 days. Most final expense policies will pay out within 72 hours, once you have submitted a certified dealth certificate to the insurance carrier. A regular life insurance policy may take anywhere from 1-3 months before the death benefits are paid.
What Benefits Are There?
Final expense coverage is usually offered as a cost-effective whole life insurance policy. Whole life insurance offers many benefits. Some of those benefits are listed below and the list is not all-inclusive.
- It provides coverage for your entire life at fixed, cost-effective payments as long as premiums are paid.
- Benefit options usually are between $3,000 and $25,000, depending on product and insurance carrier.
- It can accumulate cash value that is available in the form of a loan.
- Death benefits are guaranteed as long as premiums are paid.
If you surrender the certificate, any cash value that has been accumulated will be paid to the owner. - Age group include individuals between 4o and 85 years of age, depending product and insurance carrier.
What Options Exist for Final Expense Insurance?
These insurance policies are usually offered in three types, which are wrapped as a whole life insurance policy. The descriptions below are broad. All features and benefits will be listed in the insurance contract the individual receives.
- Guaranteed Issue Whole Life (GIWL): Not required to answer any questions about you're health when applying.
- Simplified Issue Whole Life (SIWL): Simple yes/no medical questions on the application.
- Graded Death Benefit Whole Life (GDB): Simple yes/no medical questions. May qualify even if they are not eligible for SIWL.
Financial Disclosure & Disclaimer Statement
Stephen J. Stellhorn, MSM Capital Management, LLC and any of their affiliates or any FINRA/SEC member firm(s) or insurance companies they may be affiliated with, either individually or severally, assume no fiduciary or other responsibility or liability for any consequences, financial or otherwise, arising from any investments in the securities, equities, bonds or other fixed income investments mentioned herein.
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