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What are Final Expenses?
Final expense is a term that we use to refer to costs that come up when a loved one passes away. Of course, this is a stressful time for all of us. But these costs can really add to our normal issues when we have to deal with the loss of a loved one. Some examples of these costs are funerals, burial plots, travel, transportation, hotels, and settling debts.
These costs are not trivial either. An average US funeral can cost $8,000 or more. That is only the burial costs, and does not include other expenses like travel, housing, lost work time, and settling any debts our loved one may have left behind.
About Final Expense Insurance
That is why final expense policies are being marketed by many top insurers these days. It is very common to see ads for them on tv, the internet, or in magazines. These are simply whole life insurance policies with fairly low death benefits ($2,500 – $25,000) that were designed to be easy for older people to apply for and get accepted for. They usually are marketed to people from about age 50 to age 80 (sometimes age 85). So the time to consider these is typically in middle age or retirement years.
Do not just buy the first policy you happen to find either. As with any insurance, not all policies or companies are exactly the same. By finding the right company and type of life insurance policy for you, you can save hundreds of dollars in premiums. Look here for Over 50 Life Insurance Quotes.
If you are looking for life insurance for older people, make sure you know the difference between term and whole life. Also pay attention to the difference between simplified vs guaranteed issue policies.
If you would like to learn more about whole life, consider reading – Define Whole Life Insurance for more information.
What is Single Premium Life Insurance?
Single premium life insurance, or SPLI, is whole life insurance that is funded – as the name implies – with one large premium right up front. This is different than the way we usually think about paying for our life insurane premiums with multiple premiums paid over a span of years, or even a lifetime. For more information, refer to Single Premium Life Insurance Explained.
Aside from the most obvous difference, the way it is paid for, what else is different?
- Because it is funded right away, with that one large payment, an SPLI policy has the potential to build a cash value very quickly. Some policies earn money on the cash portion at a fixed interest rate, and some will be tied to a market index, like the S&P 500.
- The money grows tax deferred. There will not be the need to pay taxes on growth in the account like you would have to on a regular bank savings account.
- This cash value gives the owner some options. In the future, it could be used as an asset. That means it can be borrowed against, cashed in, or sold in a life settlement.
- So in addition to paying for life insurance, that premium can actually help build an asset that can be used while the owner is alive.
- As for the insurance part, it can be used to turn one sum of money into a much larger estate. Let us say a 65 year old has $12,000 in cash that is not needed to live on. This is just an example, but that $12,000 might be turned into a $100,000 face value life insurance policy. Of course, you understand that actual rates depend upon many factors like the insurer, current premium charts, age of insured, health, etc.
So what’s the downside of single premium life insurance?
Well, of course, the insured person needs to have the money to set aside. If you do not have the cash to fund the policy, that you do not expect to need for several years, this may not be a good option for you. A traditional life insurance policy, and more liquid forms of savings or investments, could be a more flexible and better option in that case.
If a product like this interests you, you can get exact quotes from insurers or agents in your local area. Visit here: Over 50s Life Insurance.
What Makes Term Life Insurance Better?
One common thought on the whole term life insurance vs whole life insurance debate is the fact that whole life grows a cash value. This means that whole life has a surrender value, and may even be able to be used in a life insurance settlement transaction. Term lasts for a period of time, and if it is not used, it expires.
But there is one rider (addition) that can be added to some term policies to make them more attractive to consumers who are doing some long term planning. This is called a return of premium (ROP) rider. It costs a bit more, but in return, it will refund all premiums if no claims are made against the policy. This is a way to get one last benefit out of an expired policy – a big check in the mail!
There are some conditions. The policy must be kept in force (paid for) for the term to collect the full benefit. In general, no claims can be made against the policy. i.e. if it pays out a death benefit, it will not pay out a return of premium. Get more information on how ROP term life works.
What Are Annuities?
Annuities have become a very attractive financial product these days? And even though many people have been advised to look into these products by their bankers or financial experts, most consumers do not understand them. Let’s go over the basics of how annuities work.
For online help – Free Online Annuity Quotes - This can help you by accepting basic information like the money you want to invest, savings goals, and your local area. In return you can find competitive products that will help you.
What Are Annuities?
Annuities are products from life insurance companies, and they combine features of both insurance policies and investment products. They are usually used to save for long term goals, or to provide income for a period of time. But because of the favored treatment of life insurance products by the IRS, they can also have tax advantages over other savings products.
Fixed Annuities can provide a guaranteed return, or they can be pegged to a market index like the S&P 500. Even though they follow the market index, they can have a guarantee that the owner will not lose money during a market downturn. Over a period of years, this can be combined with tax savings to produce good and secure returns.
So for instance, say a fixed, index annuity follows the market, but has a guaranteed return of 2%. During 5 years of growth, the return could be 6% (still better than bank CDs, plus tax deferred growth), and during 2 down years, the annuity still returns 2%. If you look at the average return, it is still better than many other savings vehicles, plus the growth gets a favorable tax treatment!
An immediate annuity accepts a lump sum as payment, and then starts to provide an immediate income. These are popular with retireees who need to transfer retirement money in exchange for monthly or yearly payments. Deferred annuities can be part of a long term savings goal because contributions can be made over a period of time, and then the owner can take advantage of accumulated income.
Learn more about annuities: Explain Annuities
Almost Everybody wants Health Care Reform!
Don’t think that the problem’s of health care cost and health insurance premiums are restricted to low income people. No, many small business owners, large business owners, and people with the bad luck to have been without decent insurance when they got sick, are struggling with costs too. And indeed, many outspoken people in the medical community have voiced their own opinions about how the crisis affect their own ability to provide top quality medical care to everybody who needs it. Even the health insurance companies will, sometimes, admit that they would like to cover more people at a lower cost, if only the could.
How Will the US Pay for Health Care Reform?
Of course, the 800 pound gorilla in the room has always been the cost. Our current Medicare system which covers most US seniors and disabled people, already costs billions of dollars. How can we cover more people when we struggle to pay for what we have?
Obama says that his government has found the answer, and I hope they have!
Some of the money will come from closing tax loopholes for wealthier Americans. That is not bound to be popular with the very rich, but since I am not in that club, I am still willing to listen! Others come from planned increases in efficiencies in the medical industry which needs to revamp the way they do business like other industries have. And some will come from increases in charges for government services.
Of course, none of these changes come without criticism, both that the cuts will hurt medical care or that they are unrealistic in the amount of savings they will really create.
Nobody said health care reform would be simple.
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What does life insurance have to do with the Rock N’ Roll generation?
Older people can benefit from no medical life insurance for seniors!
Well alot of us wonder if we can still find affordable life insruance policies!
We used to be covered, either through a term policy that expired, or through a job group benefit plan that expired when we left, were let go, or retired. But now, just as we want to do financial planning for our later years, we have no coverage.
Why Do People Over 50 Need Life Insurance?
Now, as we get older, we can see even more need for life insurance too. We want to leave cash for our spouses or children when we pass away. And we also want to make sure they have enough money to settle our debts, keep making payments on assets, and just to pay for our funerals! You have got to know that funerals can run $8,000 to $10,000 or more in the US right now
I have some great news for those of us who have passed the first bloom of youth.Statistics, which life insurance companies just love, show that we are living longer and more productive lives than any generation that has come before.
Based upon those statistics, top companies have actually lowered rates over the last decade. Even more, many companies have been much friendlier towards older people. I have seen whole life insurance that can be applied for up to age 80, and term policies for people in their 70s.
Of course, that age a person can access some varieties of coverage will depend upon some other details. General health and good health habits will help a policy get approved at lower premium rates.
Guaranteed Life Insurance For Senior Citizens
While some guaranteed coverage will take applicants, regardless of health, they will be more expensive, have waiting periods, and will probably max out at a lower applicant age. Still, these guaranteed policies can be great for some people who cannot obtain other policies.
Simplified Life Insurance For Healthy Seniors
These policies do have some health requirements, but they are meant to accept most applicants. So the majority of reasonably healthy people who are still functioning outside of an institution, should qualify. They can have an immediate death benefit, with no waiting period, and the rates will be lower than a similar guaranteed plan.
Fully Underwwritten Policies
If you are a fairly healthy individual in your 50s, 60s, and even 70s, you may opt for a fully underwritten life insurance policy. If you get accepted, you will have the best chance of being able to buy more coverage for less money. And you can choose a term or whole life policy too.
A 70 year old may not expect to find a 30 year term life insurance policy, but she may find an affordable 10 or 15 year policy.
Another option would be to look at whole life insurance. As long as the policy is kept in force, these policies will never expire. Of course, because of that, whole life will cost more than term, but it may be a better option for older applicants.
Older people, age 50 to 80, can find life insurance coverage. It is more a matter of finding the right plan for you and your family.
Is it time to find life insurance for older people? Our fast, safe, and free personalized online life insurance quotes can help you save time and money!
Why Rank Top LIfe Insurance Companies?
If you want to buy life insruance, you probably want to find a top company! The problem you may have is determining how to rank life insurance commpanies! You may start with the size of the company, and you can look at a top life insurance company list like the link that shows revenue and assets. But is company size the only thing we need to know?
Ways to Rank Life Insurance Companies:
- Size of company by revenues or assets.
- Premiums Amounts for Policies
- Customer service rankings (high) or Lower Consumer Complaints.
- Friendliness to tougher insurance cases to place, like life insurance for older people or for people with health conditions.
What Do Consumers Want?
Most consumers want cheap life insurance policies too. It is important to find the company that will offer competitive rates for an applicant like you, and that operates in your local area. Really, the only way to determine this is by comparing life insurance rates and policies in your local area.
Finding Top Life Insurance For You!
Of course, our fast, safe, and free online insurance quote forms can help. It takes about 4 minutes to fill out a simple form, and then you can sit back and let the best companies compete for your business!
Many seniors, or even middle aged people over 50, get ads for a life insurance product called final expense insurance. Since a lot of life insurance products are marketed to younger people, they may not understand why they may need a life insurance policy. However, even though seniors may have retired, they may not have outlived a good use for life insurance.
Plan For A Funeral
Seniors, or their children, may know that funerals can cost $8 – $10 thousand dollars these days! Sometimes it is hard to come up with that much cash to pay for a nice funeral. In addition, some family may need to travel. Others will certainly need to take time off of work. A body may need to be transported. It is never fun to think about a loved one passing away. But still, many people plan for this event.
A final expense life insurance policy can be a simple and affordable way to make sure that the funeral, and other expenses, can get paid for.
Sometimes seniors buy a policy for themselves, and sometimes, children or caretakers purchase the policy. If the seniors buy the policy, they set the beneficiary to the people who will be responsible for making final arrangements.
Settling Debts
If elderly people still owe money, many want to make sure that their children or grandchildren do not have a burden to worry about when they pass away. A final expense plan provides cash, so these debts can be paid off. Again, a senior may purchase a plan so the kids get cash, or the kids may own the policy on the elderly person. That way they make sure they have the money to settle debts and pay off medical bills without any problems.
Transfer Money To The Next Generation
Most of the time, proceeds from a life insurance policy are tax free. If a parent or grandparent would like to make sure that their descendants get some money when the pass away, a seniors life insurance policy can be an easy way to plan for this.
Seniors Life Insurance Is Designed For Easy Issue
You can find simplified or guaranteed issue life insurance policies. That means that most seniors, in reasonable health, can qualify for a final expense plan.
With guaranteed issue policies, nobody is turned down. The drawbacks are that rates will be higher than with simplified issue, and the death benefit may not be immediate. It usually has a waiting period of 2 – 3 years before the full benefit will be paid. If the covered person passes away before that, it usually refunds premiums, sometimes with interest.
Simplified issue plans ask some health questions, but are still written for reasonably healthy older people. The death benefit should be immediate and premiums will be less than guaranteed issue plans. If a senior does not want to answer any health questions, insurers know they are taking on a bigger risk, and so they charge accordingly.
Either way, many older people will benefit from a life insurance policy. They will have the security of knowing that they have planned for their passing.
Find the best final expense insurance rate from a top life insurance company.
We are proud to offer the best insurance quotes.
WHY DO SENIOR CITIZENS NEED LIFE INSURANCE?
Too many people assume that the golden years bring an end to responsibility. They picture grandma and grandpa sitting in their rocking chairs out on the porch, with grandma knitting and grandpa looking out into the sunset. This is a great scene, and it can be a wonderful image of retirement! However we all know that this picture of grandma and grandpa is hardly complete. American seniors are living longer, staying healthy, and being quite productive well into their traditional retirement years.
>>> Find Final Expense Insurance Rates <<<
During these hard times the children and grandchildren are moving back in with the grandparents as they still need their support. The picture of grandma and grandpa attending school functions,
like, picking up the children when they are sick may be created because these days multiple generations are still living with them.
Funeral and other expenses can cost thousands of dollars today. The average cost of a funeral in the US can cost $8,000.00 and many can cost much more. In addition to the cost of funerals, other bills may have to be paid. Medical bills can arrive in the mail for months on end after a loved one passes away. The person who passed away could leave debts that need to be settled and assets that Need to be handled. Family members may need to travel; either for their jobs or they might need to take off work it is an incredible burden to have to come up with thousands of dollars to settle all of these bills during a very sad and stressful time.
Many seniors may want to transfer their wealth to the next generation. A tax free way to transfer their wealth is by cashing in your life insurance policy and giving them the cash. Paying life insurance
premiums, with the assurance that heirs can inherit the money, are an affordable way to plan for this.
Some life insurance policies have a cash value, or they can be settled for a cash value. Some types of life insurance, like whole life and universal life policies, actually build up a cash value. This value
can be borrowed against or cashed in when the policy owner needs money. In addition to providing valuable coverage, it can also be a way to build up and asset. Many people like this idea of
combining coverage with a savings or investment plan. Tern life does not usually have a cash value, but some may have an option to convert to a permanent type of life insurance. So universal life insurance, whole life insurance, and some term life, may be sold for a cash settlement to an investor. In other words, some policies may be sold for more than their cash value.
Seniors may still have a need for life insurance because responsibility does not end at 65! The good news is that insurers are extending affordable coverage to older people. You can even find term life insurance for older people
The Unemployment Health Insurance Issue Worries many Americans!
Along with a host of other problems that come with unemployment, like a lack of income, comes the concern over health insurance! We already knew that almost 50 million Americans lacked a medical plan, and that number has got to be rising with record unemployment figures. So what do unemployed people do for health insurance?
- COBRA – This is a law that forces some employers to extend group benefits for several months after an employee is terminated. However, those employers do not need to continue paying part of the premiums. The bill to the employee for the entire group insurance premium can be a burden.That is why many people look for: COBRA Health Insurance Alternatives.
- Individual Health Insurance Plans – You can find private insurance policies to cover yourself, and your family. You, and your family, will need to be accepted by a private insurer. So people who are fairly healthy, and also fairly young, will probably find an affordable individual health insurance policy. Keep in mind that many private insurance plans do not cover normal maternity expenses!
- Government health insurance programs – You can find some federal, state, and country programs for people with low income, or for people with high risk medical conditions that get them declined for health insurance. Learn more here: No Health Insurance.
You may have many affordable unemployment health insurance choices, but you may have very limited options. You need to explore an extension of group benefits if it is available vs. a private health plan vs. a government health program.
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