What is Life Insurance?
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary sum of money (the “benefits”) upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the premium.
Term Life Insurance
Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else. There are three key factors to be considered in term insurance: Face amount (protection or death benefit), Premium to be paid (cost to the insured), and Length of coverage (term).
Final Expense Insurance
Final expense is a simple, whole life product used mainly to pay for expenses that arise at the end of one’s life, however, can be used to pay much more than funeral and burial costs. The lump sum payment provides financial support for mortgage payments, rent, auto loans, credit card bills, as well as hospital/doctor expenses. These plans are smart, affordable, and popular with agents as well as clients.
Whole Life Insurance
Whole life insurance provides lifetime death benefit coverage for a level premium in most cases. Premiums are much higher than term insurance at younger ages, but as term insurance premiums rise with age at each renewal, the cumulative value of all premiums paid across a lifetime are roughly equal if policies are maintained until average life expectancy.
Part of the insurance contract stipulates that the policyholder is entitled to a cash value reserve, which is part of the policy and guaranteed by the company. This cash value can be accessed at any time through policy loans and are received income tax free.
Policy loans are available until the insured’s death. If there are any unpaid loans upon death, the insurer subtracts the loan amount from the death benefit and pays the remainder to the beneficiary named in the policy.
Stone Creek Senior Health Offers the Following:
LTC-Long Term Care
Term Life Insurance
Whole Life Insurance
Final Expense Insurance
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