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FAQ – Life Insurance

frequently asked questions

Frequently Asked Questions

Here are some of the most frequently asked questions surrounding burial, funerals, and life insurance. If you don’t see your question, please reach out to us. We will follow up to see if we can help.

Can I buy Life Insurance directly?

The short answer is no. Life Insurance is sold via agencies or brokers. One exception however, is a guaranteed issue life policy. These types of policies can be sold directly by insurance companies. But, all guaranteed issue insurance comes with a two year waiting period.

What is a captive agent?

A captive agent works for one insurance company and can only offer what that company has to sell. Example – a State Farm agent

Why should I use a Life Insurance Broker?

We have a distinct advantage over a captive agent. We work with several different insurance companies and can offer a variety of options depending on what fits the client best.

What is a Life Insurance Rider?

Life Insurance Riders are extra benefits that a policyholder can add on to their policy. These additional benefits go into force with your policy. Each rider may increase your premium, but they are meant to enhance the coverage of your policy.

What is the Premium?

The premium or premium payment is the amount of money an individual pays for an insurance policy. Your “Mode” or “Modal Premium” describes the payment plan that your policy uses. Usually paid monthly, quarterly or annually.

Is a Medical Exam required for coverage?

No. Several life insurance carriers offer policies that skip the medical exam, even having an instant decision. This option uses an online application or phone interview and usually takes minutes to complete. None medical exam policies are available for Term LifeMortgage ProtectionWhole Life and Final Expense/Burial policies.

What is Term Life Insurance?

Term life insurance works by providing protection for you and your family for a set period of time. Common term lengths are 10, 20 or 30 years. If you were to pass away during the term of your coverage, the death benefit would be paid directly to your beneficiary(s).

What is Mortgage Protection Insurance?

Mortgage Protection is a version of term life insurance that pays off your home loan balance if you die. The mortgage life insurance policy usually lasts for the same number of years as your mortgage.

What is Whole Life Insurance?

Whole life insurance is meant to be permanent and last for the insured person’s “whole life”. Advantages of whole life is that the policy builds cash, the payment never increases and the insured person can never outlive it. Subsequently, whole life insurance is often used for estate planning, to fund generational trusts and for final expenses.

What is Burial Insurance?

Burial insurance (also called Final Expense or Funeral Insurance) is a type of life insurance designed specifically with seniors in mind. It is meant to help cover the costs associated with a funeral and burial.

What is Guaranteed Issue Life Insurance?

These policies are marketed through the mail or on television. Guaranteed issue plans have no health questions and are not medically underwritten. Acceptance is guaranteed. However, they ALL come with a 24-month waiting period. In addition, the cost is higher relative to policies that require medical underwriting.

What is the best kind of life insurance for seniors?

Final Expense insurance is a very popular choice for seniors. A medical exam is not required to qualify; just answering a few health questions along with recent medical history is normally all that is needed.

How much does Final Expense Insurance cost?

The cost of final expense insurance varies considerably based on a number of factors. Most plans start at $20 a month but it depends on the applicants age, health, and coverage amounts that they require.

Can I purchase Burial Insurance for my Parents?

Yes, you can purchase burial insurance for your parents to help cover their final expenses. Doing so can provide peace of mind for you and your family knowing that the financial burden will be handled.

Can I combine a Burial policy with other types of life insurance?

Yes. It’s actually quite common for an individual to have a final expense insurance policy combined with other life insurance coverage. This can help provide additional peace of mind for your loved ones.

How long do I pay on my burial policy?

Unlike some Term Life policies, Final Expense Insurance premiums are generally fixed and do not increase with age. In most cases, the insured pays premiums until death. However, there are options allowing policies to be paid up in 10 years, 20 years, or at age 65.

What is involved in planning for my funeral?

Planning a funeral has a few steps but is actually pretty straight forward. You want to set a budget, put aside funds, arrange the details and finally share your wishes with your family.

What does the average funeral cost?

The National Funeral Directors Association estimates the median cost of a funeral and burial is approximately $8,500.

What is the average cost of a casket?

A casket is often the most expensive item you’ll buy for a traditional funeral. An acceptable price for a casket is $2,000-$5,000 but some can sell for as much as $15,000 or more.

How much does a cemetery plot cost?

Cemetery plot pricing can vary widely ranging from $400 to $4,000. This can depend on the ownership (public/private) of the cemetery.

What does cremation cost?

The National Funeral Directors Association estimates the average cost of a funeral with cremation at about $6,000. Depending on your location, cremation can range from $1,000 – $3,000 on the low end but can cost as much as $6,000 – $9,000 based on the services performed.