Burial Insurance

Burial Insurance

There are many important reasons to carry live insurance, but the need for traditional life insurance can change quite dramatically over time. While a worker with a high paying job and lots of kids to support may need a million dollars or more in death benefit coverage, that same worker may need only a fraction of that coverage after the kids have grown up, found jobs and struck out on their own. In addition the life insurance needs of parents with young children will be quite a bit different from those with no children to support. Life insurance is an intensely personal type of purchase, and it is important to look for a policy that suits your own specific needs. No two people will have the same life insurance needs, and it is important to customize coverage to your own specific needs.

For instance, older people have often outgrown much of their need for life insurance. While each spouse will still need a certain amount of life insurance coverage to protect their partner in the event of an untimely death, the amount of life insurance needed may not be as high as it was during those prime working years.

One need that never goes away, however, is the need for burial insurance. Carrying burial insurance provides an important protection for those left behind by paying for the cost of the funeral, the final burial and the services of the funeral home and funeral director. Carrying this type of specialized life insurance coverage is a great way for individuals to relieve their loved ones of the stress of paying for an expensive funeral in their time of greatest need.

When considering the need for burial insurance it is important to keep in mind that funerals can be quite costly these days. It is also important to be aware of the fact that Social Security pays only a small part of the cost of most funerals – only a couple of hundred dollars. This can create quite a shortfall for families in need, and it is important for every individual with a family to protect to purchase burial insurance sufficient to pay for the funeral.

Fortunately burial insurance can be quite an affordable type of coverage, and shopping around can yield even greater savings. Furthermore individuals can save even more money by combining a quality burial insurance policy with a prepaid funeral or cremation service. These types of prepaid funeral plans have become increasingly popular, and they are a great way for individuals to spare their loved ones the stress of planning and paying for a funeral or cremation service.

By combining a burial insurance policy with this type of prepaid arrangement individuals from all walks of life and all financial circumstances can take care of their families and give them the peace of mind that comes with knowing that everything has been taken care of. Burial insurance is a great way to provide that all important final gift to the people who matter most in your life.

Term Life vs. Whole Life Insurance – the Pros and Cons

Term Life vs. Whole Life Insurance – the Pros and Cons

There are many different kinds of life insurance on the market, but two of the most popular are term life and whole life insurance. These two types of life insurance are among the most popular and the most valuable kinds of coverage, but it is important for those in search of a new or replacement policy to understand the differences between the two. Both term life insurance and whole life insurance have their advantages and their drawbacks, and it is always important to shop carefully.

Term Life Insurance
Let’s start our discussion with a look at term life insurance. Term life insurance is the simplest, and typically the least expensive form of life insurance coverage, and it is a good choice for many individuals and families. Term life insurance is designed to provide a death benefit – and only a death benefit. Unlike other forms of life insurance there is no investment element. Term life insurance provides only a death benefit. Buying term life insurance has a number of important advantages, including:

– Term life insurance is typically the least expensive form of coverage, making it a good choice for workers of limited means. Term life insurance also typically provides a higher death benefit for the premiums paid than other types of life insurance.
– Term life insurance is easy to buy and simple to understand. Since there is no investment element there are no complicated investment decisions to make. Many life insurance buyers like the simplicity and straightforward nature of this type of coverage.
– Term life is a great way to fill a temporary need. For instance many workers will purchase a term life insurance that covers the same time period as their mortgage. The purpose of this type of coverage is of course to pay off the mortgage if the breadwinner dies before the home is paid off. Term life is the perfect vehicle for this type of situation.

Of course no type of life insurance coverage is perfect, and it is important to understand the negative aspects of term life insurance as well. Some of the possible drawbacks of this type of coverage include:

– Term life insurance is not permanent. As the name implies, a term life policy is in place for a set period of time. Once that time has passed a new policy must be written, and that policy may come with higher premiums.
– If the policy is canceled or not renewed the insured gets nothing back. While many whole life policies provide a cash back provision, term life policies do not.

Whole life insurance provides a different set of advantages and disadvantages, and it is important for shoppers to understand those pros and cons. Whole life insurance is designed to provide an element of investment along with a basic death benefit. Some shoppers will like the idea of combining investments with insurance, while others will prefer to keep the two separate. Let’s start with the advantages of whole life coverage.

– Whole life insurance can provide permanent insurance. Unlike term life insurance, which expires after a set period of time, whole life coverage is typically in place for life.
– Policyholders may be entitled to money back even if the policy is cancelled. Unlike term life insurance whole life insurance provides the opportunity to take money out while the insured is still alive.
– Whole life can be cashed out while the insured is still alive. This cash out provision is one of the most popular parts of whole life, and that cash can be used for all manner of expenses.

While whole life certainly has a number of advantages, it is important for shoppers to be aware of the potential drawbacks as well. Some of the potential pitfalls of buying a whole life insurance policy include:

– Whole life policies can be expensive. Compared to comparable term life policies whole life insurance coverage can be quite costly. It is important for shoppers to compare policies carefully and be sure they can afford the extra costs.
– Whole life can be confusing. Unlike term life whole life provides an element of investment along with the death benefit. The insured will need to determine not only how much coverage is needed but how the premiums are to be invested as well.
– The returns on the investment portion can fluctuate. Since the premium payments can be invested in a number of different ways the returns of the cash portion of the policy will vary. It is important for whole life buyers to understand the investments they choose.

By understanding the differences between term life and whole life insurance shoppers can be sure they get the coverage they need at a price they can afford. Life insurance is an essential purchase, and it is important for those in need of coverage to understand all their options.