Planning for your final expenses is something we all have to finalize so that our loved ones are not left with the burden of trying to pay for the necessary costs that occur when we pass. Boichot insurance is brokered with a wide variety of companies so that no matter your age or health we can find the company that is best for you.
Depending on your age and health there are many options when planning for final expense. From birth to 85, you have options that give you piece of mind that your loved ones will receive the money they need to pay your final expenses. There are mainly three types of life insurance to consider: term life insurance and whole life insurance. The cost of this insurance is based on your age and healthy, so the younger we are when we start the policy, the less the cost. For term and whole life, the premium cannot go up over the course of your life once you start the policy. Meaning the price you pay the first month will never go up the rest of your life. We will go into each of these insurance types in detail below.
Term Life Insurance
Term life insurance is good for a certain time period and costs a lot less than whole life insurance. Term life insurance (TLI) is usually good for 10 to 30 years and is great for a couple or a small business owner prior to retirement. A couple would buy a 30 year term policy when they are younger and want to make sure that the spouse and immediate family are taken care of if something were to happen. The amount varies based on the need of the family, but generally you want to look at income, average monthly bills, and age of the children to determine the amount needed.
For business owners they are looking to ensure that if something were to happen, the company could restructure and find a replacement while still maintaining the business.
Most customers who buy term life insurance out-live their term policy, but it gives them coverage and piece of mind in case something were to happen during the specified time period. Many employers offer term life insurance while you are employed. If you leave the company, many loose their life insurance or they can self pay for their policy. But please be aware you could pay into a term policy and believe you have coverage until you pass in your 80s or 90s, when in actuality this type of insurance is only for a set time frame and does not build cash value. Remember term life insurance is for a certain period of time, so if that time period is up you have to either renew for another term (time period) or look into whole life insurance.
Whole Life Insurance
Whole life insurance is life insurance for your entire life, it builds cash value over time, and cannot be cancelled unless the monthly premium is not paid. Most whole life policies go to age 100, so as we get older we want to consider having some whole life insurance.
Most life insurance companies have a level benefit or a graded benefit. A level benefit is coverage for those that are healthy and have not have any major health issues. The coverage starts the day you purchase the policy once approved. This type of insurance is underwritten so there are health questions and a health interview required to pre-qualify you.
Grade life insurance is for those that have or have had major health issues. This is a guaranteed issue product meaning you cannot be down due to any health issues, however the cost is higher than that of a level policy. This means it is important to start your policy when you are younger prior to having any health issues so you can get the coverage you want at a much lower price. Finally a graded policy typically has a two year waiting period. This means if the policy holder were to pass away in the first two years, the beneficiary would receive the premiums paid in, but not the face value. If the policy holder passes away after the two year period their beneficiary would receive the full face amount. Remember this type of insurance is for those that have or have hard health issues so to protect themselves the insurance companies have a two year wait until the beneficiary would receive the full face amount.
Peace of Mind!
Call us or complete the quote form on the right to see which life insurance best fits your needs and give you and your family piece of mind that everything is taken care of!