Frequently Asked Questions
Answers to common questions about the types of coverage we offer.
Final expense insurance is a small whole life policy, usually between $5,000 and $25,000, that covers burial, cremation, and other end-of-life costs. It pays a lump sum to your beneficiaries when you pass away.
Most people pay between $30 and $70 per month depending on age, health, and coverage amount. Rates are locked in and do not increase over time.
Most people between ages 50 and 85 qualify. Some plans require answering a few health questions. Guaranteed issue plans accept everyone in that age range with no health questions at all.
No. Final expense policies do not require a medical exam. Simplified issue plans ask a short set of health questions. Guaranteed issue plans skip health questions entirely, though they may include a waiting period for full benefits.
Yes. Your beneficiaries receive the death benefit directly and can use it however they choose. Funeral costs, medical bills, rent, groceries, anything. There are no restrictions on how the money is spent.
Term life insurance covers you for a set period, usually 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive the death benefit. It is the most straightforward type of life insurance.
Term life lasts for a fixed number of years and costs less per month. Whole life lasts your entire life and builds cash value over time. Term gives you more coverage per dollar, while whole life doubles as a savings vehicle.
When the term ends, your coverage stops. Some policies let you renew at a higher rate. Others let you convert to a whole life policy without a new medical exam. Check your policy for specifics.
A common rule of thumb is 10 to 12 times your annual income. If you earn $50,000 a year, that puts you in the $500,000 to $600,000 range. Factor in debts, childcare costs, and how many years your family would need support.
Many term policies include a conversion option that lets you switch to whole life without a new medical exam. This can be useful if your health changes during the term. Not every policy has this, so ask your agent.
Whole life insurance covers you for your entire life as long as premiums are paid. It includes a death benefit and a cash value component that grows over time at a guaranteed rate.
A portion of each premium payment goes into a cash value account that grows at a guaranteed rate. You can borrow against it, withdraw from it, or let it accumulate. Loans reduce the death benefit if not repaid.
Whole life costs more because it lasts forever and includes a cash value savings component. Term life only pays out if you die during the term. You are paying for permanent coverage plus a built-in savings account.
Yes. You can cancel at any time and receive the cash surrender value, which is your accumulated cash value minus any surrender charges. Early cancellation usually means you get back less than you paid in.
Whole life gives you lifetime coverage, a guaranteed death benefit, fixed premiums that never change, and cash value that grows over time. Term is cheaper but expires. Whole life stays with you.
IUL is a type of permanent life insurance where your cash value growth is tied to a stock market index like the S&P 500. You get a floor that protects against losses and a cap that limits gains. It combines life insurance with market-linked savings.
Your cash value earns interest based on how a market index performs. If the index goes up, you earn a return up to a cap. If the index drops, you do not lose money because there is a floor, usually 0% or 1%. You participate in some of the upside with protection on the downside.
IUL works well for people who want permanent life insurance with more growth potential than whole life and are comfortable with variable returns. It is also popular for supplementing retirement income since you can access cash value tax-free through policy loans.