Maybe you didn’t think you could benefit from life insurance at the time. Or you didn’t think you could afford it. For whatever reason, you didn’t purchase life insurance during your younger working years. Now you’re looking to play a little catch up.
But don’t despair. There are options available for you and others age 50 and older needing coverage.
Concern about burdening your family with the cost of final expenses is understandable. A funeral just may be the third largest expense you make in your lifetime, often totaling $10,000 or more with added fees for ceremonies, transportation and other incidentals.
You can spare your loved ones the emotional drain and financial stress that comes with paying for funeral and related expenses with final expense whole life insurance coverage. Final expense whole life insurance requires no medical exams. The issuance of the policy and plan type will depend upon your answers to the health questions in the application. Some plans offer cash value flexibility.
Whole life policies have multiple benefits. For example, if you stop payment, any cash value remaining will extend your total face for a number of years. Also, you can take a smaller policy paid up for life.
Once you decide on a life insurance plan that works for you, remember to keep your beneficiaries informed of you choices.
Life insurance policies also are tax-free for beneficiaries. Life insurance proceeds are distributed to beneficiaries tax-free. This can be a very significant consideration in providing financial support to your family.
There are a few important things to consider when choosing a life insurance beneficiary. Don’t select a minor child under the age of 18 or 21, depending on the state. If you do, those benefits will not be paid to them until they are of age. If you have will, don’t forget to adjust your beneficiary information on your policy, as the will may not override those choices.
Be sure to notify your beneficiary. If you fail to inform your beneficiary and they do not make a claim, those benefits could be lost. For more information about unclaimed life insurance benefits, visit the Insurance Information Institute.
For help in finding the right life insurance plan for you, contact Johnson & Associates today at (336) 226-8595. Apply for a free quote.