There’s a lot of talk recently about life insurance, and people are buzzing with questions regarding what strategy is best for their budget. The average family in the United States makes $54,000 per household per year, and most employers offer term life insurance benefits. Term life insurance is like “renting” a policy until you’re 70 (The actual age depends on the product you purchase), and then that policy ends. Term life insurance’s purpose is to give you peace of mind in case something happens to you early, when you still have people relying on your income and protection.
Whole life insurance is the other kind that gets clients asking questions. Whole life insurance is “permanent” because it lasts your whole life (some policies until age 100). Whole life insurance is usually a significantly larger payout as a death benefit, but it is also a larger annual premium than term life insurance. This whole life insurance model is beneficial for households who are already maxing out their other retirement investments like 401(k)s and Roth IRAs.
Why End of Life Insurance is Different
Final expense insurance and preneed insurance work cohesively with every person’s needs, budget, and other investments. We have plans and premiums for all situations, and funeral insurance is not just something clients should consider after their life insurance policies expire (usually at that age of 70). Final expense insurance and preneed insurance are affordable, logical ways to invest in the future of your spouse, children, and other loved ones, and take care of them even after you’re gone.
Let’s talk through an average scenario that we see all the time here: we have a financially responsible couple who are both retired and using their retirement benefits, Social Security, and payouts from other investments or savings accounts to meet their everyday needs. They own their house, they are in fairly good health, and their term life insurance policy has ended. No worries there—the children are grown and gone and the grandchildren are being provided for by their parents.
Unfortunately, Grandpa is diagnosed with cancer, and things move pretty fast for him—there are hospital bills, medication costs, lots of tests and doctor’s visits and soon, the two people who were managing just fine a few weeks ago are drowning in expenses they can’t afford. After Grandpa passes away, Grandma is living alone and has a fall that sends her to the hospital as well. She lives out her last few weeks, months, or years in a skilled nursing facility, of which insurance only covers 20%. Suddenly, the children are covering the costs of medical care for both parents, Grandpa’s funeral, and soon, Grandma’s funeral as well.
There is no wrong time to start investing to prevent this scenario. None of us knows what the future holds, and funeral costs can be exorbitant—especially when all other savings are depleted. A funeral should not be a burden on your loved ones when they are grieving and need help the most. Put your money where it will benefit the most people—purchase preneed or final expense insurance, no matter what your budget looks like today, we’ve got you covered! Discover more about the plans we offer HERE.Continue Reading