Most people understand the value of life insurance, at least when it comes to taking care of a loved one’s final expenses. But did you know that term life insurance can do more than just pay for your burial expenses? That’s right. Term life insurance can be used to protect your family long after you have passed. Here’s how.
• Term life insurance is less expensive. There are many different types of life insurance from whole life to universal and group life insurance. By far, term life insurance is cheaper in terms of premium cost, while you are still alive. It is fairly easy to find cheap term life insurance. This helps you in a number of ways. First, the money you save on your annual premium costs can be invested in a 401(k), IRA or in a savings account as an emergency fund. You can also use the extra money you save every month to pay down debt or save for a down payment on a large purchase. Secondly, you can afford a much larger policy, which equates to a larger payout to your beneficiary when the time comes to claim benefits, helping to replace lost income.
• Term life insurance policies are more flexible than other options. Another valuable aspect to term life policies is their flexibility. In most cases, qualifying for a term life insurance policy is easy. Most don’t require a health examination, though this aspect is different from insurer to insurer, you can choose to have a policy that has a static premium over the term or a static level of benefits over time (whichever is most beneficial to you) and most have several options when it comes to paying your monthly premium. Additionally, even if you have a whole life policy, you can purchase a term life policy to supplement those benefits.
While there are many benefits to having a term life insurance policy in place, there are a few drawbacks. Most term life insurance policies do not accumulate a cash value, so you can’t draw out money you’ve paid into them in the event of an emergency. Term life policies are only enforceable for a specified term, meaning that if you do not pass away while the policy is in force, you lose your ability to collect benefits after the term expires. Each of these drawbacks can be avoided by employing prudent planning.
As you can see, there are a number of ways in which having a term life policy in place can protect your family both now and in the future. Schedule some time to talk to your company’s Human Resources department or your insurance provider and find out how you can protect your family today.
Although many people think that Medicare is complicated, in reality it is fairly simple insurance coverage. The problem with it is that it does not provide coverage for all of one’s medical expenses. To address this, the federal government worked with private insurance companies to create Medicare supplemental insurance, also called Medigap insurance because it covers the “gaps” in health insurance for seniors.
Currently, ten different Medigap plans exist. Each one is assigned a letter. The plans cover different combinations of the nine different coverage gaps left by Medicare Part A and Part B. Medigap Plan F is the most popular plan because it covers all nine of the different gaps.
Each state holds the responsibility of administering the plans for their state. Forty-seven of the states have adopted the same ten Medigap plans. Minnesota, Wisconsin, and Massachusetts have elected to adopt their own plans. That means a consumer with a Pennsylania Medicare supplement will have the same coverage as a consumer with the same Florida Medicare supplement.
If you sign up for Medigap coverage between six months before and six months after you turn 65, you will not have to go through any kind of medical underwriting. This means that pre-existing health conditions or unhealthy lifestyles will be covered at the same premium as healthy individuals. Outside of that window, known as Open Enrollment, you will pay an increased premium or possibly be rejected for coverage for pre-existing conditions.
Medigap plans give people an affordable alternative to paying high Medical expenses out-of-pocket.
More people would rather die than engage in public speaking, and yet the latter is an inevitability. Many are kept awake at night wondering if they were to suddenly pass away, would their loved ones be prepared to handle the expenses? Final Expense insurance was put in place so that if should tragedy suddenly rear its ugly head, your family won’t be the ones hopelessly holding the bill. Final Expense insurance is a must have for anyone over the age of 50, lest your family wind up in staggering debt due to your inauspicious passing.
More often than not, burial service homes today offer pre-planning aids. This permits you to go in and make game plans for some or the sum of your particular burial service, down to each item. The burial service chief will give you a value record for merchandise and utilities, which is mandatory under recent funeral legislation. Preplanning eases your loved ones of extreme stress and questionable matter over game plans. It might even take a load off the minds of relatives over what you needed for your utilities and internment. Provided that you choose to prepay your plans, numerous memorial service executives will offer a value certification. That means you can secure today’s costs regardless of when your burial service is held sometime to come. With burial service costs just predetermined to go up, this is a sharp decision. Provided that your costs are not secured and you prepay, your family may need to pay additionally during that time frame of your burial service to have up to the same effect.
In drawing up prepaid contracts, burial service executives might offer ensured costs for certain things however not for others. Case in point, costs on blossoms and grave utilities may not be ensured.
Last cost protection, otherwise called “entombment” or “final expense” coverage, is a life coverage transaction with a flat value, for example $1,000 to $10,000, that you purchase straight from a protection association. You can name any beneficiary, regularly a relative, who might make the case and gain the cash upon your expiration. That beneficiary might then be responsible for utilizing the cash to do your wishes.