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Final Expense VS Life Insurance

Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.

Final Expense Coverage

The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.

Life Insurance Coverage

If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.

A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!

white drawing of a person with 3 arrows pointing in different directions — *When deciding which plan is best for your family’s needs, it is best to compare plans from different companies.*

One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.

Deciding Which Plan Is Best

Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.

Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.

If you’re not sure where to begin looking for a policy, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Why Stay-At-Home Parents Need Life Insurance Too

As a stay-at-home parent, you don’t always get the recognition you deserve, even though you’ve got one of the toughest jobs around. Not only are you raising children, which is not easy, but you are often the one keeping up with the finances of the household, doing the many loads of laundry, running errands all day to make sure the fridge is stocked, getting your children to and from practice, and on and on. Considering all of this, it doesn’t make sense for only the breadwinner of the household to have life insurance; they might bring home the bacon, but there is so much more that a stay-at-home parent does that contributes to the household. How would your family get by if you were gone?

Don’t sell yourself short or just how much you contribute everyday within your household. In the event of your passing, your spouse or partner will have to take on more roles than before, which can cost them more than expected. They will be grieving your loss, but you can make the process a little easier by continuing to contribute to the household with a life insurance policy. It can help:

Keep The Household Running

illustration of a person carrying a bucket with cleaning supplies and a mop — *You not only clean the house, but you do laundry, cook, shop and finances, which your partner will have to take over when you are gone.*

You do not get enough credit for all the work that you do around the house, which, on top of taking care of the kids, is a full-time job. If you were to pass, your spouse would need help with the laundry, house cleaning, shopping, cooking, and childcare, since they would most likely be unable to keep up with all of that while working a full-time job. Outsourcing all of this can all be very expensive; in fact, consider this: if you were to pay stay-at-home parents for all the work they do, their annual salary would be roughly $160,000! You contribute a lot more than you think! A life insurance policy will help your spouse cover all of these new expenses and roles, ensuring that they have help even when you’re gone.

Daycare Costs

Since you are a stay-at-home parent, you are the primary caregiver for your children, if you passed, your spouse would have no choice but to put the children in daycare when they return to work. Daycare costs a little over $11,000 a year per child, which is an expense that your spouse might not be financially ready for. You want your children and partner to be able to continue their daily routines and grow, even when you’re gone. Having a life insurance policy ensures your partner can provide top notch child care for your children while also keeping their career on track.

Provide for Your Children When You’re Gone

Are you planning on helping your kids financially when they go to college? Or would you like to help them put some money down for a new house one day? Are you planning on getting a job and making a steady income once they are in school full-time? No one knows what the future holds, but with a life insurance policy, you would still be able to provide all of this financial support, even if you were no longer around.

the word debt with a green eraser getting rid of the word. — *Life insurance can help pay off some of your debts that you share with your spouse.*

Pay Off Debts

If you have any loans that your partner co-signed, they will have to shoulder the burden of paying it back. Having life insurance would take the stress off them and provide them with help paying back any of your debts.

Cover Funeral Expenses

Funerals are not cheap. Most people do not have extra money tucked away for an unexpected expense like this, but you can provide that for your family when the time comes. With a final expense life insurance policy, you can make sure your family has money for funeral costs as well as any other expenses, such as medical bills, and more.

Give Loved Ones Peace Of Mind

A life insurance policy will not only give your family tax-free benefits in the event of your passing, but it will also make an incredibly difficult time much easier on your partner and family. Your family losing a parent and partner is tough; they will be grieving, and worrying about future bills and expenses is the last thing they need while finding a way to cope.

What Kind Of Life Insurance To Get?

When choosing a life insurance policy for your family, it all comes down to your needs and what will work best for them. Do you want a life insurance policy that has cash value you can withdraw and use during your lifetime? Then a permanent or whole life insurance policy is a great option. Do you want life insurance that will remain in effect for your whole life or just for a certain amount of time? If you want a policy that will remain in effect just while you’re paying off your mortgage, for example, a term life insurance policy is perfect. The possibilities are endless, but the best way to determine which is best for you and your family is by comparing plans from multiple companies in your area.

Being a stay-at-home parent is a wonderful – and tough – job. And just because you don’t bring home any actual income, doesn’t mean that the work you do doesn’t play a large role in supporting your household financially. That means that your job is just as important as that of the breadwinner of the family, and so it’s just as important that you have life insurance. When deciding on a policy, consider using online tools to see what’s available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Life Insurance & Pre-existing Conditions

Having a pre-existing condition is very common; in fact, according to the Centers for Medicare and Medicaid Services (CMS), half of Americans under the age of 65 have at least one pre-existing condition. Unfortunately, when it comes to life insurance, pre-existing conditions can affect your coverage options. It’s no secret that the healthier you are, the less expensive a policy will be. But the good news is that having a pre-existing condition will not disqualify you from getting a plan. With a little bit of knowledge about how getting life insurance with a pre-existing condition works, and some help from a qualified agent, you can find a plan that will work for you.

What Is A Pre-Existing Condition?

A pre-existing condition is a health issue that you were diagnosed with or treated for before applying for insurance. Each insurance company has its own set of rules when it comes to these conditions. Some of the most common pre-existing conditions in the U.S. include:

a light blue colored inhaler — *Asthma is one of the common pre-existing conditions that can affect life insurance costs.*

Diabetes
Asthma
Heart disease
High cholesterol
High blood pressure
Cancer
Lower respiratory disease
Stroke
Obesity

Generally, if you have one or more of the conditions mentioned above, you will raise a red flag with life insurance companies. Don’t lose hope though – having one of these conditions does not mean you can’t find a great affordable plan.

How Pre-Existing Conditions Affect Life Insurance Costs

When you apply for life insurance, the insurance company’s underwriters will collect your medical history, and some will require you to undergo a medical exam. They do this to get a good idea of your lifestyle (such as if you’re a smoker or drinker) and current health before they agree to take you on as a risk. Depending on any pre-existing conditions that you have, they might raise your premiums. Your rates will be based on the following scale:

Super Preferred, or Preferred Plus- These are the lowest rates
Preferred
Standard, or Regular
Substandard- These are the highest rates

Many people will qualify for super preferred, but if you have a serious health condition that could be considered life threatening, you will most likely qualify for substandard rates. The higher a risk you are considered by your insurance company, the more you will have to pay, since your life expectancy would be presumed to be shorter than that of a healthy individual. For example, health issues including Type 1 and Type 2 diabetics can lead to substandard rates. Other conditions that can trigger a substandard rate are Multiple Sclerosis, Crohn’s Disease, history of cancer or stroke, or Hepatitis C.

It is important to note that not all insurance companies rate conditions the same; for example, one company might see asthma as a serious condition, while another company might not increase your rates if you have it. If you have any preexisting conditions, working with a licensed agent who knows which insurance companies will cover you at an affordable rate is definitely the way to go.

How To Lower Your Rate

a woman and 2 men running on a treadmill next to each other — *Exercising and losing weight can help lower your life insurance rates.*

Even if you have a pre-existing condition, there are things you can do to increase your chances of getting life insurance, and to lower your rates. The best things you can do are making lifestyle changes and trying to manage your condition. Consider doing the following:

Improve your health by following the treatment plan issued by your doctor for any medical conditions.
Exercise, which can help lower high cholesterol and high blood pressure, among other benefits.
Lose weight, especially if you are obese, which can affect your health and life expectancy.

The Best Life Insurance For Pre-Existing Conditions

Don’t assume you will be turned down for life insurance just because you have pre-existing conditions. Some insurance companies offer policies that cater to individuals with specific health conditions. In addition, there are many different kinds of life insurance policies that you can qualify for. For example, if you cannot get a permanent life insurance policy (which builds cash value over time), you can opt for a guaranteed issue life insurance policy, which was designed for people with severe or multiple health conditions. Unlike whole life, guaranteed issue life insurance does not build cash value over time, you simply make monthly payments in exchange for a fixed amount to be paid out upon your passing.

You can also choose to purchase a term life insurance policy for anywhere from 10 to 30 years and lock in the rates for that term. These policies are a more affordable option that you can get even with pre-existing conditions, as long as you are receiving treatment for your conditions and have them under control.

When looking for a life insurance policy, it’s best to work with an agent who is familiar with the underwriting process and standards for each medical condition that you might have. They will advocate on your behalf and will find you the best plan for you and your budget.

Remember, life insurance is an important financial security blanket for your family. And just because you have a pre-existing condition does not mean you can’t find a great plan that will help secure their future. We have listed some of the top-rated insurance companies below, so check your rates today and find out what you can do to get approved or lower your current rates!

Choosing Life Insurance Beneficiaries

When you make the wise choice to purchase a life insurance policy, you have a lot of decisions to make. First, you have to decide if you want term life, whole life, final expense life, or another type of life insurance policy. Then, you need to decide how much coverage is needed to provide full financial protection for your family. After you have researched companies, found quotes and picked a policy, your next important step is to pick a life insurance beneficiary. This is the person who will receive the money in the event of your death. It sounds simple enough, but there are some details to be aware of before making the choice.

Know Your Options

a caucasian woman and afircan american man holding a baby — *You have different options when choosing a beneficiary; you can choose your spouse, or children, or a business.*

A beneficiary can be one person, multiple people, your estate, a charity, a business, or a trust. If the beneficiary is an individual, you can choose a relative, child, spouse, friend or anyone else. However, if you live in a common property state, also called community property states, life insurance beneficiary rules will require your spouse to waive their rights if you want to designate someone else as beneficiary. There are 9 common property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

If you choose to make your beneficiary a trust, that trust will manage the dispersal of the money; for example, you could arrange it so a trust manager would be in charge of paying for your children’s needs as instructed by you.

Legally making your estate your beneficiary is generally not recommended because, in this case, creditors would be able to go after your life insurance money. Once the creditors, court fees and lawyer are paid from the estate (however much that dips into your loved ones’ life insurance money), whatever is left will be divided among your beneficiaries.

Choosing A Beneficiary

When choosing who to name as your beneficiary, you should ask yourself who relies on you financially and will need help paying ongoing bills when you are gone. Would you like to leave some of the insurance money to charity? Do you want your business to continue? If so, you can make your business partner a beneficiary.

When you do choose who you want the money to go to, you will need to be as specific as you can and put everything in writing, including their Social Security numbers if possible, relationship to you, dates of birth and addresses. You can change, add or remove beneficiaries at any time.

Multiple Beneficiaries

pie chart with different colors for each piece — *If you choose to have multiple beneficiaries, the amount divided will have to equal 100%.*

If you want to give a payout to multiple beneficiaries, check your life insurance policy first. Some will have a limit on how many you can have. If you do decide to have multiple beneficiaries, you can also choose how much each beneficiary will receive. For example, your spouse can get 50% of the benefits, and the remaining 50% can go to your child. If you don’t specify how much you want each person to get, they will all receive an equal amount.

Primary vs. Contingent

You also have the option of naming both a primary and contingent beneficiary. Your primary beneficiary will be first on the list to receive the benefits after your passing. If your primary beneficiary dies before you, refuses the proceeds, or can’t be located, the contingent life insurance beneficiary will receive the benefits.

Naming Children As Your Beneficiaries

If you have minor children, they will not receive any of the money until they are 18. To make sure they can have access to it, you can:

Name their legal guardian as beneficiary.
Designate a custodian for the proceeds through the Uniform Transfers to Minors Act. This person is then named as the beneficiary.
Create a trust for the child and make the trust your beneficiary. The trustee will oversee the money and distribute it as per your wishes.

What Happens If You Don’t Designate A Beneficiary?

If you do not name a beneficiary for your life insurance policy, the insurance company will issue the death benefit to your estate. The probate court will then decide how to distribute the funds, which will include settling your debts, which will mean less money for your loved ones.

Taking the time to make sure loved ones are protected with a life insurance policy is admirable. But in order to make sure that the proceeds go where you want them to, you have to choose the right beneficiary or beneficiaries. When choosing a life insurance company, ask about their beneficiary rules to make sure that the plan will meet your needs. To get more helpful information about different types of life insurance policies, and how you can get coverage that fits your budget, take a look below. We have provided information for top-rated insurance companies that specialize in life insurance, so check their rates today and see just how simple and affordable it is to protect your family. Always check multiple sites to make sure you have bargaining power and to know the advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Why Single People Need Life Insurance Too

When many people think of life insurance, they think about buying it as security for the families who rely on them. While life insurance is definitely something that everyone with a family should have, this doesn’t mean that single people don’t also need life insurance. In fact, there are multiple reasons why single people should consider getting life insurance! Odds are, many single people will have one the following reasons for getting covered.

You have student loans

graduation cap on top of stacks of hundred dollar bills — *If you have private student loans, then it can fall on your parents or other cosigners after your death.*

Did you know that the average American owes almost $40,000 in student loan debt? When taking out a large loan such as one to pay for your education, more often than not you will need a cosigner to secure the loan. And, while federal student loans are discharged when you die, that is not the case for private loans. If you pass away, you will leave your parents or other cosigner on the hook to pay that money back.

You have other debts with cosigners

Student loans often have cosigners, but you could also have another type of loan that a parent or someone else has co-signed. For example, when you first started out after high school or college, you probably had no credit and needed a cosigner for any loan you needed, such as for a car or house. Anyone who co-signed your loans will be responsible for those debts even after you are gone.

This is an excellent reason to get life insurance – you don’t want your debt to turn into their debt! Term life insurance plans are a good choice, because you can take out these policies for the same amount of time that you will be paying back your loan. For example, if your loan has a payback period of 10 or 30 years, you can get a term life insurance policy to cover you during that time.

You own a business with a partner

silhouette of people shaking hands with gears in the background and the word partnership — *If you own a business with someone, you can help keep the business going with your life insurance money.*

If you plan to start a small business, or are currently running a business, you will probably have or need to take out small business loans to help it grow. If you have a business partner, your death would put a lot of financial strain on them, because they would need to take on the entirety of those loans. Life insurance would help keep your business going, and keep your partner out of debt, by replacing your share of the capital.

You plan on having children someday

If you know you want to have children in the future, it is best to take out a life insurance policy when you are young and healthy so you can get more coverage at a lower price. Planning ahead in this way will ensure that your future children will be taken care of. Remember, when you take out a life insurance policy, you can always add beneficiaries to it later, so you can be certain the money will go to them.

Your family has a history of health issues

If you have a family history of a serious health condition, such as heart disease or diabetes, then there is a chance you will be diagnosed with that condition in the future. Consider getting a life insurance policy when you are young and healthy, so that any pre-existing conditions will not prevent you from getting a good plan with low rates.

You want to cover end-of-life (final) expenses

white casket with white flowers on top of it in a car — *Final expense life insurance will help pay for your funeral, and other debts you may have when you are gone.*

It’s a hard subject to talk about, but eventually everyone will pass away. When that time comes, it will be emotionally tough for your family, and it could also end up being financially tough for them if you do not have a way to help them pay for your final expenses. Funeral expenses can cost anywhere from $10,000 to $15,000, an amount that many people just don’t have on hand. This will leave your family scrambling, trying to come up with the money to bury you as well as cover any other debts you might have. Final expense life insurance policies are inexpensive and can help your family at this difficult time.

There are many different kinds of life insurance policies to consider. Final expense life insurance is best for the end-of-life expenses, and is inexpensive. Term life insurance is a great option for a single person with loans, because you can choose a term that suits your specific needs. Speak to an agent to help you decide what kind of policy is right for you, both now and in the future. Below are some of the top-rated insurance companies in the country, all of which offer affordable plans specific to your needs. Look into rates today so you can protect your future.

Term Life Insurance

It might not be a subject that we like to think about, but unfortunately, we won’t be around to take care of our families forever. It is important, though, to plan for the future, because when we are gone, our bills will get passed on to our family members. If you are married, have children, or own a house, you have expenses, and if something happens to you, your family could end up struggling financially.

two gold balloons being held up by caucasian hands making the number thirty — *With term life insurance, you have the option to choose how many years you want coverage, up tp 30 years.*

To make sure that your family doesn’t get left with a large financial burden, consider a term life insurance policy. These policies, which you can purchase for a period of 10 – 30 years, are affordable and remain in effect for the entirety of the specific term that you choose. Your family depends on you, which is why it is important to provide them with a financial safety net in the unfortunate event of your death.

How Term Life Insurance Works

One of the major benefits of term life insurance is that you can choose the duration of the plan and how much coverage you want. For example, let’s say you buy a house and take a 30-year fixed mortgage of $2,200 a month. If you were to pass suddenly, the $2,200 mortgage payments can be a lot for your family to handle. But because term life insurance can be bought in increments, you can buy a term life insurance policy that covers these payments for the duration of your mortgage.

If you survive through the term of the policy, you can opt to end the policy, extend it, or convert it to a permanent life insurance policy. Just be aware that if you choose to renew your term life policy, you will pay a slightly higher premium rate.

Check Out These Discount Life Insurance Options Below! Make Sure You Compare More Than One For The Best Rates!

pink piggy bank with gold coins going into it — *Monthly payments are fixed, which makes it easy to fit into your monthly budget.*

Term Life Advantages

Term life insurance is more affordable than permanent life insurance because the monthly payments are fixed, meaning they are guaranteed to stay the same for the whole term of the policy, making it easier for you to budget. You are in control of how long your policy will last, and can base the decision on your current and future expenses. Most policies are set in 5-year increments, but there are some policies that will allow you to set your term in increments of as little as one year. You also have the option to buy multiple term life policies; for example, you can buy a 30-year policy to protect your family and a 10-year policy to protect against a loan.

In addition to being affordable, term life insurance is also flexible. Once your major financial obligations are no longer an issue, for example when your mortgage or loan is paid off, you can cancel your policy at the end of its term. Then you can opt for another term life policy with less coverage because your expenses will not be as large, OR you can convert your term policy into a permanent life insurance policy to cover you for the rest of your life.

How Much Term Life Insurance Do You Need?

When deciding how much life insurance you need, take into account any outstanding debt, future education costs for your children, dependents, funeral expenses, and any extra financial expenses your family might have when you are gone.

There are a number of term life policies you can choose from that will fit your family’s needs. Investing in a term life insurance policy will protect your family’s future in the event of your death. You want to take care of your family as long as you can, and with a term life insurance policy, you can continue to provide for them no matter what happens in the future.

Finding an affordable term life insurance plan can be time consuming, you need to figure out just how much coverage you need, which means taking the time to sit down and really consider your expenses and assets. It can be confusing and getting the right Term Life Insurance coverage is something you do not want to take lightly. To make sure your family is taken care of in the event of your death you will want help. Consider using online tools, or speaking with an agent. We have provided the top Term Life Insurance companies in the nation that offer hassle free assistance and the most competitive rates below. Always check multiple sites to make sure you have bargaining power and know the different advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check term life insurance rates today.