Is there a life insurance that does not increase with age? What type of insurance is this called? It is called a permanent whole life final expense policy, and it will cover you until death or 121 year old, whichever happens first...and the monthly premium will never go up.
My name is Andrea Edwards and I am an independent life insurance agent in Maryland and I specialize in final expense burial insurance for seniors.
People like yourself usually find out after they have paid in to a policy for a number of years that their plan premiums go up, and not just once, but every 5 years or more. For many people the monthly cost rises so high that they can no longer afford it and they either cancel it on their own or it terminates by default when their payment doesn't clear.
So what are your options if you want life insurance that does not increase but you currently don't have it? You may want to purchase a final expense whole life policy to protect your loved ones.
Why buy life insurance that does not increase? Firstly, final expenses should be defined because there is a particular reason people buy whole life final expense coverage. These reasons include having money for your family to cover costs related to funerals, burials or cremation. So, for example, if you're concerned about who in your family can easily sign that check over to the funeral director, and the answer is no one, you definitely want to buy life insurance that does not increase for as long as you live.
Many people, hundreds of thousands of men and women, have a plan as I'm describing to cover these expenses. They are on a fixed income and do not have the capacity to pay for this stuff out of pocket. They don't want their spouse or kids to have to ask for the money to bury them by starting a go fund me campaign, having a carwash, or fish fry.
Now, just as much as you would purchase life insurance that does not increase with age for funeral expenses, you can easily purchase it for non final expense related costs as well. So if you have a car loan, and you want to give this car to your granddaughter, or you want to keep it in the family, leave it to your spouse, but not have them pay for this expense, the policy proceeds could pay for it.
Let your imagine run wild. Anything you don't want somebody else to pay for when you pass away a policy like this would cover. It could also be used as income replacement. This is something I see very commonly amongst husbands and wives 60s, 70s, and even younger and older too. It seems like the cost of living always goes up and many seniors have found the need to go back to work in order to maintain the life they've grown accustomed to.
The concept is simple. Typically speaking, the male has the higher social security income earning, whereas the female usually receives a lower amount. If one of you are still in the workforce it is usally the same outcome, the man typically earns more than the woman. In most families the men go first, but of course, we don't know if this will be the case ahead of time.
But imagine if you're a woman who loses your husband or vice versa. That is going to have a big shock economically. Whether your monthly check pays for the big bills like mortgage/rent, utilities and city taxes, or the smaller costs like groceries or car insurance, the loss of that income will be missed. That is why these policies are perfect to help replace some of that income to offset the change, and to make life easier for the surviving spouse.
Lastly, seniors purchase this type of life insurance that does not increase over time to leave a legacy. Let's say you want to leave money behind for your grandkids to help them get through college or to help get them started. That is a great reason to buy a plan, to have it available for those you love, just as a gift.
So generally with these kinds of plans, final expense permanent whole life policies, they are smaller death benefits. And when I say smaller I am referring to the face value amounts. But most people don't buy a million dollar death benefit. The majority don't even buy a half million dollars. Most of the time, what we come across are people who purchase a plan that's going to cover enough for burial, let's say roughly $10,000 to 25,000 is common.
We can even do smaller numbers. I've helped people out with $2,000 or $3,000 because all they want is just a very simple cremation and nothing else. Usually these plans are what we call simplified issue, whole life final expense.
All that means is that nobody's going to poke you with a needle or ask you to pee in a cup. There's no examinations or physicals you simply complete an application Unknown 4:04 sometimes you do a phone Unknown 4:06 interview to verify health conditions over the phone or you just send out the application and get approved but the great thing is you don't have to do all these things extra to even potentially qualify for with these plans either qualified or you don't especially if you do a phone interview as I like to do with my clients we find out immediately a thumbs up or thumbs down so you don't have to wait around you get an instant decision which is really wants business