What is a Forethought Life Insurance Company?
Memorial and funeral planning is paid for through the sale of an annuity or whole life insurance from Forethought Life Insurance Company, Indianapolis. This company is known for the “earn while you save” mentality. This is one of the first plans that they offer. Here’s what happens if you need to make a quick burial.
Your loved one’s death happens suddenly, leaving behind a challenge. You have to decide on a final expense policy in addition to the mortgage loan on your home and purchase a funeral and burial plan through the forethought life insurance company. In most cases, whole life insurance coverage will provide the funds you need to pay for the funeral. The question is how much will the funeral cost?
It is always difficult to anticipate these types of financial problems, but it is possible to give an approximate amount you can afford for your loved one’s burial. The next step after deciding on the type of policy is to decide which of the many available whole life insurance products offered by the forethought life insurance company will best meet your needs. There are policies that cover the cost of the funeral only. There are also those policies that cover costs related to the funeral, including embalming, funeral arrangements and cemetery plots. These types of plans are generally less expensive than the standard whole life insurance products offered by the company.
It is important to decide early on how much money you are prepared to spend on the funeral and final expense insurance product. Because there is such a difference between the cost of a policy to cover the basic costs of a funeral and one to cover all expenses associated with a burial, it makes sense to get this decision out of the way early in the process. To do otherwise, will leave you confused, angry and financially strapped when you suddenly find yourself needing to make use of your policy at a time when you do not have the cash on hand to do so. The best approach to deciding how much coverage to buy is to first get a quote from the company offering the full range of products and then to decide how much coverage you feel you need.
When you select the full range of products offered from your chosen insurance company, there are many ways in which you can help the family of your deceased loved one. One way you can help is by taking advantage of the company’s renewed policy. A renewed policy is a policy that offers coverage even if your family meets the definition of a medically needy person. If your family falls into this category, then the funeral expenses coverage in the contract can help to meet some or all of these funeral expenses.
In addition, many of these preneed contracts provide coverage even if the death happens very quickly. For example, most life insurance companies will pay out cash value to a beneficiary. If the beneficiary does not die within a short period of time, then the premiums on the contract will continue to accrue interest. If however, the beneficiary dies within a reasonable period of time, then the death benefits will cease to exist and this will mean that the premiums will stop being paid.
The way that the preneed policy works is that it sets up a contract between you and the insurance company. The contract begins with you as the policyholder, and you agree to pay a monthly premium for a stated period of time. The contract also contains language allowing the insured to make payments to a particular charity of your choice in lieu of paying the contract premium. Then, upon the death of the insured, the charity is responsible for paying the funeral expenses in full. This ensures that your family has the money it needs to honor your loved one’s death.
A renewed policy is only available through some financial rating agencies, like Moody’s, Standard and Poor’s and Fitch. To apply for one, you must fill out a form with your personal information and details about your life and also about the funeral expenses you would like covered under the rider. If you wish to get a rider, the financial rating agency will determine if you are a good candidate. Then, they will contact you and ask if you would like to apply for a rider. Financial ratings agencies are not the only ones that can help you obtain a suitable rider for your preneed policy.