So, you’re looking for life insurance – but you don’t know what kind of coverage you need. That’s understandable. Today’s market is full of options. Plus, for most people, a mix of different policies provides the best coverage.
No matter what your age, it’s smart to think about life insurance. In fact, the younger you start, the easier it is to get affordable coverage. But, the good news is that no matter what your age is today, there’s an option that will work for you.
Whole Life Insurance or Term Life Insurance?
The difference between traditional whole life insurance and traditional term life insurance can be summed up by the differences between “when” and “if.”
And, depending on your age, income and other factors, it might be a good idea for you to have both whole life insurance and term life insurance.
Traditional whole life insurance is for “when” you die. In other words, it’s a permanent policy. Because you’ll have it for the rest of your life, these policies can have higher initial premiums than other options.
While it may cost you more in the short term, there are long-term benefits to whole life insurance. In some cases, you can borrow against or cash out the policy. And a payout is guaranteed to your family when you pass away — no matter how far in the future that date is.
Keep in mind that both traditional whole life and term life coverage are issued for larger amounts. For example, you might have a $75,000 whole life policy and a $125,000 term life policy. (You can talk with an agent for help determining exactly how much coverage you need.)
Final expense life insurance is a type of whole life insurance that typically has a lower face value than traditional options. It usually pays out faster than traditional life insurance does. These policies allow your family to pay funeral bills and other costs, like medical expenses. The quick payout is helpful, because in many cases, family members need to pay for a funeral or other bills before other types of policies would pay out.
Why do final expense life insurance policies pay out faster? Because they offer smaller coverage amounts (between $5,000 and $35,000) that are designed specifically to help family members pay for funeral expenses and other immediate needs.
Keep in mind that final expense coverage is only available for people who are between the ages of 50 and 85.
Term life insurance is just what it sounds like – coverage for a certain “term” of time. It might be for 20 years or 30 years. It will pay out a sum of money “if” you die during the policy’s term. Because these policies have a set expiration date, they’re not as expensive as whole life options.
Think of term life as temporary coverage for the period in your life when your paycheck is the most important — during your 30s, 40s and 50s when you have a mortgage, car payment, student loans and childcare expenses. As you age and retire, replacing lost income becomes less important.
Why Get Final Expense Coverage?
Even if you have another policy (or more than one other policy), final expense coverage can be helpful to your family when they need it. It’s designed to give your family the resources they need – so they don’t have to worry about funeral expenses.
You might think of final expense coverage as an extra layer to add to policies you already have. For example, if you’re 52 years old, you might have a term life policy you bought when you were 30, a traditional whole life policy and then final expense life insurance to pay for your funeral and ease the time between your passing and the larger policies’ payouts.
And, final expense coverage can also be helpful on its own — especially for people who are older and haven’t purchased coverage yet. For example, someone who is 68 might want a final expense policy to ensure their children or spouse don’t have to pay funeral and medical expenses.
Peace Assured: A New Option for Your Final Expense Coverage
Peace Assured final expense whole life insurance makes getting coverage for your final expenses easier than before. You can apply completely online, or talk with one of our friendly, non-commissioned agents. You’ll have a decision about your coverage within a few minutes. And, you can choose the premium payment interval that best fits your needs and your budget.
Your coverage will start immediately, and you can make updates you need 24/7 on your online portal. What’s simpler than coverage like that?
You can get started today, just by clicking the Get a Quote button at the top of this page. Or you can give us a call at 866-353-8995 to talk with one of our non-commissioned licensed life insurance agents.
If you’re also shopping for whole or term life coverage, Sagicor Now can help. You can get a quote in seconds and apply online here.