For one thing, whole life is, by definition, a permanent policy. As long as the premiums are paid, or the policy has been paid up, an insured person will be covered. Most specify that if the insured person dies before age 100, their specified beneficiaries will receive the policy face value. If the insured person survives until age 100, they will get the face value as a birthday present!

In addition, whole life insurance actually builds up a cash value. After the insurance portion has been paid for, any cash value earns a specified interest rate. In past years, the investment value was judged to be poor, but these days, when it is hard to earn more than a couple of percent on savings, and investments are shaky, a guaranteed return does not look that bad.

If you want lifetime coverage, and the ability to combine an asset with life insurance, than you may want to consider a whole life insurance policy as part of your coverage.

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I wanted to do some research on US funeral costs for a few reasons I won’t go into here, but what I did find was that it was very difficult to come up with current numbers. For one thing, consumers really do have a lot of options which can affect funeral costs. For another thing, it seems to be one of those things that is not discussed a lot out in the open. Considering that some funerals can cost as much as a car, it does seem odd that we do not see the same resources for comparison shopping that we do buy a 2 year old minivan. There are no funeral listings on EBay or or Nexttag, at least not that I could find while I was researching!

Funeral Cost Options

Let’s look at a very vague average funeral cost figure that excludes some pretty expensive items. In 2006, if you exclude the casket, cemetary plot, monument and other extras like flowers, the figure of a bit over $6,000 was arrived at. Of course, caskets can cost anywhere from $600 - $10,000, with a loose average of a bit over $2,000. So now we are up to well over $8,000. You have to add a burial vault or grave liner to that, which will average another $1,200. So it looks like a funeral can approach $10,000 or more. And I haven’t even found the average cost of a monument, though I know they can range from a few hundred dollars to several thousand dollars.

Of course, some things can reduce that cost. The funeral can be held at the gravesite, another venue besides the funeral home (like a place of worship or community center) to reduce the cost, or even in a home. Some people choose cremation for economic or philisophical reasons, which will elimiate some costs.

One good way to reduce costs is to consult with your place of worship or communit center. Clergymen, for instance, should be able to guide you during a time of funeral planning, and they won’t be motivated by profit like a funeral home is. This is a delicate time, and many people feel guilty about shopping after their loved ones have pass away. But still, think about your loved ones. Would they want you to overspend on their funeral, or would they just appreciate a pleasant funeral to show love and respect? Would they really care if their casket was plain or fancy, or if their monument was ornate?

Planning Ahead for Funeral Costs

If you are concenred about funeral costs because you are doing your own financial planning, or because you are planning for the death of a loved one, it really is a good idea to be prepared. Death and burials are a delicate subject in many families, and nobody wants to be seen as planning a party upon the passing on of a friend or family member. On the other hand, loved ones will have plenty of grief and stress right after a friend or family member dies without having to worry about where 10 grand in cash is going to come from to pay for the funeral, burial, and associated expenses like travel, meals, and time off of work.

What About Funeral Plans?

Some people plan for funerals by making sure they have a bit of cash set aside. This is a great situation, but many seniors are on fixed and reduced income and would find it very difficult to save $8,000 - $10,000 or more so they can plan for their own funerals. Of course, families step in to help, and the family and friends may contribute to the pot.

Pre-planning is popular these days, either though pre-need plans or final expense plans for seniors. Pre-need arrangements may be made with a funeral home or cemetary by paying for some or all of the costs in advance. Final expense plans are a form of senior life insurance which pays out a cash death benefit that can be used at any funeral home, and for other expenses as the beneficiary sees fit. In addition, any excess money from the policy can be used as a (usually) tax free way to inherit money and leave an estate!

Look at: Final Expense Insurance Rate Quotes

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Term life insurance is a popular product these days, and that’s because it is usually the most affordable. The reason the product is cheaper is because it is, by nature, a temporary protection, even though the term may last for decades. However, since insurers do underwrite it first, they are gambling that the insured person is healthy enough to survive the term, barring some bad luck, an accident, or unforeseen illness. They offer coverage for less because they do not plan to pay out. Of course, some small percentage of covered people will die, and then the insurers do pay the agreed death benefit. But most people survive the policy, and that is how top life insurance companies make money.

Whole life insurance costs more, but it is a permanent product. It will cover insured people as long as they keep the policy in force. In general, keeping the policy in force means paying the premiums. Some whole life policies can also be paid off over a span of years, and 10 to 20 year paid up policies are common. Whole life policies can also build up a cash value over time, and may grow at an interest rate. So some people consider a whole life policy as a combination of insurance and savings, but many financial professionals do not think of them as top investment choices.

Universal life insurance is also permanent life insurance, and it was designed to combine insurance with savings or investments. The cash value of the policy is unbundled from the insurance part of the policy, so it is easy for policy owners to see which part of their premiums go to pay for premiums, and which part go for cash value. The cash may grow, according to some index, like the S&P 500, but usually at a bit lower rate. Many policies also have a minimum guarantee, so they do not lose money in bad years.

This article is only intended to introduce you to the common types of life insurance you can find on the market today. Before you chose your own protection, you should learn more, and also find out which plans are the most competitive ones in your own area. An easy way to do this is with an online life insurance quote form. You can enter your information one time, and then sit back, and get competitive life insurance quotes.

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Term Life insurance is best for many people who just want to buy life insurance for a set amount of time, usually the term of a mortgage payoff or working years or the years when children are young. That is because term policies are pure life insurance, and as the name implies, they are in force for a set term of time. So a 35 year old with a mortgage and two young kids and a spouse who stays home with the kids would probably consider term for the buld of their coverage.

But why do I say the bulk of coverage? That is because a permanent policy has uses too. Whole life insurance lasts as long as it is kept in force (premiums are paid, or the policy is paid off), and does not expire after a term. It can also build a cash value, and even be borrowed against. Many people want permanent coverage to transfer their estate to their heirs after they pass away in a way that has many tax advantages. If you are not familiar with permanent coverage, look at whole life insurance explained.

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If you care for an aging person, or if you are a senior citizen yourself, then you have probably noticed ads for burial policies. These are also called financial expense insurance. The offers look attractive because they promote a way to take care of funeral expenses by making affordable monthly payments. If you have done any research on the price of funerals, you know that they average around $8,000, and can cost much more. Beyond just the burial expense, when somebody pass away, many family members have to travel on on little notice, and that can get expensive. The departed may have left some debts or other affairs to be settled, which is another thing to deal with. Nobody likes to think about the death of a loved one. However, this is a very stressful time, and a little prior planning can relieve a lot of pressure.

These types of policies are, simply, types of whole life insurance companies that have been designed to be easy to apply for. They have also been designed with older people, usually 50 - 80, in mind. Simplified issue policies ask few health questions, and most elderly people can qualify. Guaranteed issue means that no health questions will be asked. They use a waiting period instead of health questions to qualify applicants. With guaranteed issue, the insured person will have to survive a specified amount of time before the full death benefit can be paid out. Otherwise, the policy will refund premiums plus a specified interest rates. Since the face values are small, every effort is made to keep the premiums affordable.

If possible, look for simplified issue, because the premiums cost less and they payout with no waiting period. However, if the applicant is already very ill, or in a nursing home, then a guaranteed plan is still a no-lose deal. The beneficiary will still collect the premiums plus interest if the insured person passes away before the waiting period, and if not, they will get back the paid premiums plus interest.

Of course, you have other options to plan for final expenses. The money could be saved into a special account. Existing savings could also be placed into an account that is earmarked to pay for a funeral. This is a good option if the money is available because savings can earn interest! The problem is that many older people lived on fixed incomes with limited savings, and somehow, this money tends to get dipped into because of emergencies like medical bills and home repairs.

Funeral homes also sell a product called pre-need or pre-paid burial plans. These work for some people, but may tie you to one funeral home or company. In addition, they will only plan for the actual burial, and not other expenses like travel or debts. Sometimes, clients even have to pay interest on these accounts, and so they may end up costing more in the long run.

There are advantages and disadvantages to these methods, and if you are unsure what you should do, consult with a financial professional. Really, the best option depends upon the individual’s financial situation.

Learn more about Burial Insurance For Seniors Since prices depend upon location, age, and health status, you can use our fast, safe, and free online quote form to compare plans and prices.

http://www.bestquoteus.com/finalexpense.html

Article Source: http://EzineArticles.com/?expert=Marilyn_Katz
http://EzineArticles.com/?Burial-Insurance-For-Seniors—Final-Expenses-Explained&id=926441

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Unemployment Mortgage Protection is one product, which either provides you when cash when laid off or is designed to make payments to your lender. Of course, we like the sort that pays the consumer cash, because the other sort just seems designed to protect the lender, and not the home owner!

But most mortgage protection insurance is simply a form of term life insurance with a face amount that covers a mortgage balance. Sometimes a decreasing term life insurance policy is used because it will decline as the mortgage declines, and so the premium is cheaper. Riders, such as a disability or critical illness rider, are attached to these policies to cover the insurance policy owner in case of these events, as well as death.

Of course, we also have people who think that mortgage protection is homeowners insurance. This is not true. Homeowners insurance covers property, where mortgage insurance covers the homeowner! Look here for the best homeowners insurance quotes.

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But you can find coverage in middle age, and life insurance over 65 is not uncommon any more. For one thing, people are living longer. In fact, you can even find term life insurance with no medical exam that can be quoted with a quick online form, and in some cases, applied for online or with a fax or mailed application. Online life insurance quotes make it quick and easy to compare the policies available in your local area.

Many people looking for over 50s life insurance would rather have a seniors life insurance policy. Sometimes these policies are intended to cover burials and other final expenses. These are whole life insurance policies, intended for permanent coverage. You can also quote final expense insurance rates with simple online forms.

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Online Life Insurance Quotes

Furthermore, all of the obligations that we had planned on taking care of before retirement age do not always vanish as planned. Sometimes people get to be 65, and they still have mortgages to be paid, spouses to support, and even find that their kids still need help. So, just as people are living longer now, their need for life insurance extends well into the senior years.

Another reason older people may want a term life insurance policy is to cover a business deal or an essential employee in a company. If large sums of money are paid out for a contract, and a senior citizen will be needed to perform that contract, a party to the contract may want to be sure that their investments are covered. Look for simple issue no medical exam term life policies.

Now an older person will probably need to look at policy terms of 15 years or less. I doubt that many insurers would offer a 30 year term life insurance policy on a 70 year old, because than they would be insuring that life until age 100. If you want coverage until age 100, than you need to look at whole life insurance instead.

But people are living longer, and insurers have noticed. After all, according to the Department of Health and Human Services, a man who is already 70 years old can expect to live an average of  over 13 more years, and a woman can expect to live over 15 more years. These are average, and a life insurance company will take an individual’s health history into account. So you can certainly find insurers who will cover a reasonably healthy seventy year old until age 80.

In fact it is sort of an irony of age related statistics that arriving at a certain age, makes it more probably that the individual will survive many more years. For instance, according to actuarial tables, a 50 year old man would have an average life expectancy of about 78. But a 70 year old man, by virtue of having survived that milestone, can expect to survive until 83. Of course, no table can predict individual lifespans, but the insurance companies do a very good job of predicting average lifespans for the large group of people that they insure.

The cost of a moderate term life policy should not put you off either. For $100,000 in term life, a 70 year old woman who has good health habits and reasonably good health could find rates less than $40 a month. Men’s rates will be slightly higher in the same age and health class. Now large policies, in the millions of dollars, may cost a couple of hundred dollars a month, so it would be important to consider how much life insurance you really need to cover any debts or obligations.

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But life insurance rates have dropped a lot in the last 10 years, and if individuals are still reasonably healthy, they may find that they can take advantage of the competition and find discount life insurance that was not available to them a few years ago!

You can simply choose an insurance type, key in your zip code, and then get a list of the most competitive life insurance companies in your local area to start researching plans and prices: Get Discount Life Insurance Quotes.

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