© 2013 Family Life Insurance Group
FLIG is committed to finding top quality, "A" Rated carriers to meet your Whole Life and Term Life Insurance needs. We specialize in finding low cost, non-exam policies for any pre-existing condition.
Know Your Options
- Decide how much coverage you need and how much you can afford each month.
- Decide what kind of life insurance you need, term life or whole life.
- Compare the cost of different carriers with FLIG Quotes .
Whole life insurance offers protection for as long as you live with level premiums
that will never increase. Whole life insurance also accumulates cash value that can be used for any purpose you desire by taking policy loans. The face amount is reduced by the balance of a policy loan if death occurs with an outstanding loan.
Term life insurance provides protection for a limited number of years. Term periods can be 10, 15, 20, or 30 years. At the end of the initial term the policy will expire and can be renewed on an annual basis, but the cost is very expensive especially at older ages. Your health may also limit your ability to obtain coverage.
Both term insurance and permanent insurance use the same mortality tables for calculating the cost of insurance. However, the premium costs for term insurance are substantially lower than those for permanent whole life insurance.
The reason the costs are substantially lower is that term policies are likely to expire without paying out, while permanent whole life programs must always pay out eventually. You will most likely outlive a term policy. Insurance industry studies indicate that the probability of filing a death benefit claim under a term insurance policy is as low as 1%.
If the purpose for your life insurance purchase is to cover the cost of your funeral and other final expenses, and you want that ability guaranteed, than a whole life policy may be more suitable for you. If you have savings that will cover your final expenses and need life insurance to replace the income you would have produced over the next 10 to 20 years only, then a term policy is suitable.
Combining Term and Whole Life
There are whole life permanent plans that offer term life riders. You may select a $25,000 whole life policy with a $100,000 term rider that will expire after 20 years. When the term rider expires the whole life portion will remain in place. If death occurs while the term rider is active the policy will payout both the whole life benefit and the term benefit. If the term rider has expired the policy will pay the whole life benefit only.
Because final expense whole life policies usually have face amounts between $5,000 and $25,000 they represent a smaller risk for insurance carriers. The underwriting on these policies is much more forgiving than term life policies which generally start at $25,000 of coverage. Clients that have experienced medical events such as heart attack, stroke or cancer can easily qualify for a final expense whole life policy without an exam. These health issues will almost always require an exam for a term policy and dramatically increase the cost.
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