Final Expense Plans
Here are some of the features of final expense policies:
-Premiums do not increase, ever
-As long as make you premium payment, policies will remain effective
-Guaranteed death benefit
-Some policies can be written similar to whole life policies, meaning they may earn dividends
Life Insurance (Term and Permanent)
Protect your family’s future when you can’t be there.
A life insurance policy helps pay for your final expenses, your mortgage, your taxes, and the living expenses of your loved ones when they no longer have your income. It can also cover your children’s education and more.
Basic types of Life Insurance
A life insurance policy is a contract with an insurance company. Thus, in exchange for premium payments, the insurance company provides a cash benefit, known as a death benefit, to beneficiaries upon the insured’s death. Accordingly, following is an overview of the various types of life insurance you can purchase through Diversified Group Services, Inc.
Term Life Policy
Term life insurance covers you for a set period of time. That is, provided you pay the monthly premium, or in some instances, a lump sum in advance. Thus, the policy will pay to the named beneficiary the face amount of the policy (set benefit and/or lump sum) upon death of the insured within the stated term. Also, depending on the policy, it may also make payments upon terminal or critical illness.
Permanent Life Insurance (Cash Value)
This type of life insurance policy builds up a cash value that has many benefits to the insured, such as borrowing against the policy or building a tax deferred investment income, in addition to paying a death benefit. Accordingly, following is a brief overview of Whole Life, Variable Life and Universal Life, which are all types of permanent life insurance. Cash value insurance is also known as permanent life insurance because it provides coverage for the policyholder’s entire life.
Types of Permanent Life Insurance
Whole Life Policy
This type of coverage combines term life coverage with an investment fund. As long as you pay your premiums, you will be covered for life. Part of your premium goes towards the term part that pays a fixed benefit upon your death, and part of your premium goes toward building taxed deferred cash value that you can borrow against. Some whole life policies offer plans in which you can pay a higher premium for a shorter, fixed period of time, such as 20 years, vs. your whole life.
Universal Life Policy
This type of policy combines term insurance with an interest earning money market account. It has flexible terms that let you adjust your payment or coverage amount. Because this account incurs expense charges, you will need to adjust accordingly to make sure your coverage stays active, in the event that the amount in your account becomes insufficient to meet premium payments. You also have the option of building more cash value by paying premiums even when your account has ample funds to cover them.
Variable Life Policy
With this type of coverage, the death benefits for the policy are based upon how well the investment account it is tied to is performing (stocks, bonds or mutual funds). Higher performance means higher benefits, wherein poor performance will mean lower, or no benefits, at all. Some policies offer a separate or extra premium for a set amount to be paid at death of the insured.
Life Insurance can be complex. We would recommend that you call us for more details.
We’d be happy to help you determine how much Life Insurance you should buy. And, we’ll advise on what type of Life Insurance is best for you and your family. Accordingly, please fill out the short form below. Then, we will contact shortly.