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  • What are the four major types of life nsurance protection?
    1. Whole Life - Permanent Protection 2. Term Life - Temporary Protection - mutiple types available 3. Universal Life - mutiple types available 4. Group Life Insurance - Available through employers & some organizations
  • What is Whole Life Insurance?
    Whole Life Insurance is protection of a permanent nature that is designed to cover an individual for their whole life hence the name (Whole Life). Exclusive to whole Life coverage is the feature that it guarantees cash value growth over time, that is tax deferred & will never decrease unless the owner of the policiy takes a loan.
  • What is Term Life Insurance?
    Term insurance is coverage of a temporary nature, designed to protect you for a designated time period of your life. Usually terms range from 10, 20, or 30 years, and gradually increases in price at each automatic renewal until the designated termination date which is typically around the age of 70. Companies like Primerica that sell only term insurance, will offer term insurance to age 90 or so but the pricing also steadily increases until the point of gross unaffordability for seniors on a fixed income or anyone really. There are different types of Term coverage like: Level Term, Renewable Term, Decreasing Term and Return of Premium a.k.a Cash Back Term.
  • What is Universal Life Insurance?
    Universal Life is somewhat a hybrid type of protection between Whole Life and Term Insurance that affords the insured certain liberties within the scope of the policy, such as desired age to be covered until. The types of Universal Life are Guaranteed, Indexed and Variable Universal Life. Indexed and Variable UL, have more fluid features, from premiums to cash value, face amount and term of coverage based on a multiple factors. Guaranteed UL, locks in the premiums, term and face anount at the policies inception which ensures that the proposed insured will always know and can always count on the protection they have. LIFE reccomends Guaranteed Universal Life from the UL options as the best protection for it's clients seeking permanent, reliable coverage. GUL offers coverage to age 120.
  • What is Group or Job Life Insurance?
    Group Insurance; usually coverage offered by an employer or sometimes through an organization or association offers temporary protection owned by that group or employer. The employer for example; takes out a group life insurance policy on behalf of its employees in which the employees or members can, opt into or opt out off and are able to select its policy beneficiaries. This coverage is usually available for a pre-negotaited rate but is still based on the most common life insurance factors such as age and heath or occasionlly is 100% covered by the employer. This type of protection is not whole life coverage, so it is not permanent and is not typicaly portable. This means that while an insured individual is employed or a part of said organization, they are protected, once a person quits, get's fired or retire's the insured or their family is no longer protected. Group policies do not build cash value. In the rare event that after employment as ended; that portablibilty is offered, typically the rates are significantly higher as the group discounts no longer apply. Be certain to have a Licensed Final Expense Advisor review all terms. Employer or group Insurance is great coverage to have but by no means replaces a policy designed to last the entire life of a person, and is owned and controlled by the insured or their family.
  • Who needs life insurance protection?
    1. If anyone in your life relies on you financially, then the answer is: YOU 2. If your death would impact the people in your life financially, then the answer is : YOU 3. If your family would require financial assistance of some sort; Go Fund Me, Fish Fry's, Church Fundraiser's for example to be able to afford your buriail or cremation without going into debt, then the answer is : YOU 4. If you do not have in excess of $20,000 of cash sitting in your bank account designated for the exclusive use, of burying you when that time comes, then the answer is : YOU *PLEASE NOTE: $20,000 is roughly what is costs as of 2020 to bury someone without a prepaid for plot, with a plot that prices drops to about $15,000. Because of the increased deaths due to COVID-19 insurance and burial rates are forecasted to go up in 2021. Even if that forecast is inaccurate due to inflation, the cost of funerals will continue to rise over time.
  • Who does not need life insurance protection?
    1. Those who are independently wealthy enough to self insure. Meaning an individual who has now and will continue to have in excess of the rising burial rates (which is currently $20K) until they die readily available and easily accessible by whomever will be burying them. Also those funds designated for that percise purpose, so that it would not change the quality of life for their loved ones, that they leave behind. 2. You plan to never retire or die working and have some form of contract clause that ensures that you can not be fired, laid off or forced into retirement, but must be covered by a group employee policy that will adequatly protect your family in their time of most dire need. 3. You will without question be inheritng a fortune or winning the lottery.
  • Do I need additional coverage if I am active or retired military?
    Service related deaths afford the current service member only $2k burial allowance + partial or full reinbursement of transportation to military plot. After October 2011 up to $700 for burial and funeral expenses is allotted, if you are hospitalized by the VA at the time of death or $300 towards burial or funeral at time of death with $700 for plot allowance. If your family wants to bury you somwhere other than a military plot, the transportation costs for your body will fall on your family. Transportation of your body may not be covered either way. If there are any special funeral arrangements your family would like to have to honor you, that cost will fall soley on your family. If you want to leave your family any money to help maintain or even better the quality of life for them after your death, you will need outside coverage. Your military allowance will not come close to being able to offer that. If you want to ensure your loved one's do not have to be responsibe for the settling of any accounts financially on your behalf then, you will need outside overage. PLEASE NOTE: A Funeral in 2020 costs around $20,000 minimum unless you have a plot already paid for. The costs of funerals is projected to increase due to inflation as it has increased from $225 in 1954 to $20,000 in 2020.
  • What ages qualify for life insurance?
    1. An infant can be protected as young as 14 days old. 2. Some carriers will still offer new Whole Life coverage for seniors up to age 89. 3. Any Whole Life or Guaranteed Universal Life once in force will not expire or cancel as long as the policy has not lapsed. 4. Most Term insurance policies will not offer new coverage after age 70. 5. Some specific types of coverage is unavailable after a certain age, depends on the carrier and type of protection.
  • At what age should I get life insurance or protect my children?
    Life insurance is reccomended as young as 14 days old. We live in an uncertain world and in uncertain times, by protecting yourself and your children or loved ones as early as possible you lock in the lowest possible rate available being that insurance rates are based on age and health, the younger you are and the healthier you are the least expensive your insurance premiums will be. You also reduce to the risk of having to wait for claim pay out due to being in the period of contestability and the longer your whole lofe policy is in effect the more cash value it will accur.
  • What is the two year period of conestability?
    Due to federal laws and insurance guidelines institued to prevent insurance fraud, the insurance company has the right to investigate your insurance claim if death occurs in the first two years of the policy life. This investigation typicaly means that the policy is not paid out immediatley, and could take several months to satisfy. Most funeral homes will still take the policy number as collateral for the funeral expenses in the meantime. If the results of the investigation deem there was no foul play, the insurance claim is paid to the beneficiary's. If the insurance company finds something to contest then, they have the right not to pay the claim and instead will send all premiums back to the policy owner or their estate. Advice: Be completley honest with your final expense advisor when filling out your application to avoid any inconsistent information that could cause your claim not to be paid.
  • How much coverage will I need to be cremated vs buried?
    Your average cremation costs between $2,500-$5,000 however there are several other crucial elements required to settle a persons final arrnagments, like Death Certificate + copies which are needed in order to submit a life insurance claim, the Orbituary is also requested by some carriers before a claim is paid, the holding facility while the person being cremated awaits the cremation and several more components that all are availabe for an additonal cost through the funeral home. We generally reccomend covering a person interested in Cremation with at least $10,000 of Whole Life Protection. If a family would like to honor or pay respects their loved one before the actual cremation takes place, that will require the rental of a casket, prepping of the body, flowers, Urns and all the items stated above. Affording the family that last chance to say goodbye to their deceaseed loved one is not something that should ever not be an option due to money. So if cremation is your preference, get protected with at least $10,000 of Whole Life Coverge.
  • What is cash value?
    Cash Value also known as Loan Value is the portion of your Whole Life policy that earns interest and becomes eligible and thus available for withdrawl or to borrow from after the first 3 policy years. This Cash Value therfore provides a living benefit to your life insurance policy instead of only a death benefit, which is what most people associate with life insurance. The interest that begins to accur as your Cash Value is earned off of your previously paid premium payments, part of each payment goes towards backing the face amount of coverage you opted for and the other part goes towards the cash or loan value. The Cash Value of your policy in typically tax free, that is only not true in the event the amount you are withdrawing exceeds the amount you have paid in premiums thus far. Cash or Loan Value withdrawls reduce the amount of coverage paid in a death claim by the loan amount unless, it is paid back. If you opt to not pay it back, only the interest on the loan is due. Policy loans are charged interest typically yearly, but your insuring company has payment plans available to pay back policy loans, should you choose to do so. USES FOR CASH VAULE: 1. Family or other type of emergencies. 2. Pay down or get out of debt. 3. Depending on the length of time the policy has been in force and accured cash value, some seniors have been able to retire off their cash value after choosing to cash out their whole life policies. 4. Down payment on a Car, or deposit on a rental agreement etc. 5. The uses are endless and it's your money, so you can use it however you want!
  • Do I still need my own coverage if my Mother or Grandmother has coverage on me?
    Yes, although it is wonderful that your parent or grand parent had the forsight to ensure their family was protected from the inevitable yet unexpected, every adult should have and control their own life insurance protection. Consider the following...if your parent has coverage on you and changes banking info and forgets to update the insurance company or God forbid ends up with Alzheimers or Dementia and can forgets to pay it, then what happens to your protection? There are an immeasurable amount of unknowns that can occur that will leave you uninsured. If you own and control your own whole life insurance you have access to the cash value and can use it if you are ever in a tight spot. But most importantly you will be able to make sure it's in place when your family needs it.
  • What is return of premium or cash back Term Life Insurance?
    Traditional term insurance is where for a relativley low cost, you are able to insure yourself or a loved one for a specific period of time and if you/they do not die during that contracted term all the money/premiums you have invested are lost or rather kept by the insurance company. Unlike traditional Term Protections; Cash Back or Return Of Premium Term guarantees the return of all premiums paid, in the event the insured does not die during the designated term of coverage. The premiums are then returned in a lump sum tax free at the end of the policy term. There is usually a reduced paid up option in case the insured opts to not take the lump sum payment. This is not a product available through most insurer's but one of our carriers for this product even offer's another lump sum payment at age 100 of the full remaining face amount of reduced paid up coverage, if the policy owner is still alive. This type pf policy is more expensive then typcial term insurance, because of the policy benefits but is also a great alternative to decreasing term coverage generally used as Mortgage Protection. ***Reduced Paid Up Insurance: Is an alternative to canceling a policy, and allows a person to cease making payments but still keep a reduced amount of coverage in affect for the rest of their life.***
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