07/21/2024
I get asked a LOT of questions from people about life insurance. Here's some basic info, I believe, everyone should know to help them protect their families.
What's the difference between Term and Whole life? And, which should I have?
Term insurance is like "renting" insurance. It has a start and end date. Many people have term provided by their workplace. It's a good policy, but may not cover immediate needs. And, if you no longer work there, the policy can go away.
Another important note on term policies is, what percentage of term policies actually pay out? Studies have shown that only about 1% of term policies actually pay out. Here's a link from Google: https://bit.ly/4d6XfpB
Whole life insurance is like "owning" insurance. The rate is locked in and the policy will stay in effect as long as you pay for it. So, your family will receive the money and the price never goes up.
What we offer is called final expense, whole life insurance. The biggest difference between our policies and "generic" insurance is how fast our policies pay out. People need money quickly for immediate expenses. Our polices pay, on average within 24-48 hours typically. We can do this because our policies are not locked in probate, are not taxed, and are limited to a maximum amount to avoid those situations.
Q: When I die, how long will it take for my family to receive the money?
A: Most people have what I call "generic" life insurance. Those policies have, by law, up to 6 months to pay the claim. Policies can be locked in probate, taxed and the insurance company is making interest on that money. They actually have an incentive to not pay fast.
Q: How difficult is it to get a life insurance policy?
A: It depends on the type of insurance. Larger policies require more extensive underwriting reviews. Some companies require a physical.
Because we do not have large policies (like generic insurance) we can approve most people and do not require a physical. Our policies are VERY easy to qualify and very easy to setup.
Which type of policy should I have?
It depends on your needs. Here are some reasons and who should have which type of policy:
Final Expense:
Almost everyone should have a final expense policy. Why? Everyone will die on day and there will be a need for immediate expenses.
It doesn't matter if you are on a limited income or have a lot of money. Making sure you have a small policy to cover immediate needs, especially when the policy provides support to keep those costs under control, will help your family. It will ALSO help protect the money you have outside of insurance. Here's a link about our family support with the FCGS: https://bit.ly/3y6iuJj
Term Insurance: People who have children who rely on their income and people who have a mortgage are the most likely to need a term policy.
For example, if you have a family that relies on your income for the next twenty years, it is a good idea to have a 20 year term policy. Or, if you have a mortgage you will be paying for 15 or 30 years, it is a good idea to have a 15 or 30 year term policy that will pay off the mortgage if you die.
Whole Life (generic): People who have extra funds to buy additional insurance and would like to leave "extra" to their families, with a guaranteed, locked-in rate.
The importance of which type you should have should be based on your needs. Ask yourself these questions:
If I died today, who will pay for my funeral and immediate expenses? And, how will they pay for them? This applies to almost everyone and a Final Expense policy will provide that solution.
How much money will my family need over the next few years? How negative will the loss of my income impact them?
If your family will need more money for a longer period, but after a certain amount of time, that need will no longer be there, a term policy may fit those needs.
If you need guaranteed money for your family for expenses like college tuition, and they will be able to wait a little longer to receive those funds, a "generic" whole-life policy might fit your needs.
Q: Can I have more than one type of life insurance policy?
A: Yes. You can have multiple policies. I believe everyone should have a final expense policy and then, depending on needs, also a term or regular whole life in place as well.
I hope this helps. Please feel free to reach out to me direct with any questions. Just FYI, I do not sell term or whole-life policies. If that is what you need, I will direct you to reputable people who do.
My goal is to make sure you have the proper information needed to protect your family, solely based on your actual needs and budget.
Thanks for reading!
Brad Harper - owner
Lasting Integrity Final Expense
(918) 330-6111
Most people qualify even with existing medical conditions. Let one of our licensed final expense underwriters help you find coverage that fits your budget.
