When searching for burial insurance, seek only for the following standards. Find a funeral insurance company which has a secure financial record capable of paying out any and all applicable claims in an orderly fashion. Find a policy that will cover you after you die, regardless of your wishes.
Find an insurance company which will supply a cash death benefit which is larger than the sum of money invested in annuities or other funds. It will be a good idea to look into the rates of some of the larger mortuaries. Find an insurer that offers these cash benefits. Some mortuaries will pay a certain percentage of your death benefit in order to fund pre-arranged funeral plans. Some will offer all cash.
Look into the type of return you will receive on your death benefits. The best policies will provide a guaranteed assurance that your loved ones will receive some or all of the death benefit, depending on the terms of your policies. Some policies will pay a set amount of money, regardless of the investments you have made, while others will pay your entire death benefit if you pass away within a certain number of years.
Ensure that you are covered during your lifetime by life insurance through a life insurance company. The amount of coverage you will need will be based on your lifestyle, your age and the amount of years you have lived. Many people fail to realize that they do not always need to make a full payment when signing their life insurance contracts. In fact, many companies will allow a lump sum death benefit to be paid. If you do not have enough money for your final expenses at this point, the money left will go towards the life insurance policy’s guaranteed minimum benefit.
Look for a company that offers two different forms of coverage. A number of policies only cover the burial and final expenses you would incur. There are some products that also offer peace of mind plus an additional benefit. Most products however only cover two specific costs: burial and final expenses.
Some insurance products offer additional benefits for a number of issues that come up over time, such as birthdays and pregnancy announcements. These can be expensive, so be sure to inquire about any discounts available. Many policies will adjust the discount amount as the age of the person increases. For example, a person that turns sixty years old will likely qualify for a higher discount.
There is a common misconception that whole life insurance policies are only available in the US. This is simply untrue. In fact, over three fourths of all policies worldwide are sold in the US. You can even find European and Asian based products but they will not offer as much protection. The reason is that many European-based companies do not allow the use of dividends. This means that they do not earn their income from your premiums and do not have access to the guaranteed final expense coverage that a traditional life insurance policy can offer.
Western insurance policies also usually offer two methods of investing in the policy. Typically this will be either a fixed annuity or a flexible annuity. The former pays out a regular amount each month, while the latter pays out the annuitant’s interests in a lump sum.
Western insurance policies also typically have two different death benefit options. These options are named beneficiary options. Some examples of a Western style variable life policy with these options are:
Western insurance companies also offer a few unique types of coverages. Two of the most popular include: individual voluntary arrangements (IVA) and the full assured issue policies. With the individual voluntary arrangement, policyholders voluntarily agree to accept lower payments than they might receive if they left the policy without having it. With this option a policyholder can choose how much they would receive should they pass away during the time of the policy.
Full assured issue policies give policyholders the ability to select the level of coverage they want. With this option a policyholder can elect whether they would like to receive the full face value or the death benefit. They may also elect to settle their final expense policies at any point within the term of the policy. Unlike the IVA, policyholders with full assured issue policies do not need to be in financial crisis before they reach the age of 65. If you’re interested in learning more about your choices for life insurance, contact a local insurance agent today.