TERM LIFE INSURANCE
Term Life Insurance
Perhaps an annuity isn’t what you need, but a Medicare supplement, term or whole-life policy is. Does your aging parent need a policy for final expenses after they pass away? VLG can shop around to provide quality policies and competitive prices. We contract with dozens of companies to find the best coverage and competitive rates, providing a simple path to achieving peace of mind.
HERE ARE SOME KEY
FEATURES OF TERM LIFE
INSURANCE
FIXED TERM COVERAGE
Term life insurance provides coverage for a predetermined period, such as 10, 20, or 30 years. Once the term ends, the coverage typically terminates, although some policies may offer the option to renew or convert to a permanent life insurance policy.
AFFORDABLE PREMIUMS
Term life insurance has lower premiums compared to whole or universal life insurance policies. This makes it an attractive option for individuals that need affordable coverage over a pre-determined period of time.
DEATH BENEFIT
If the insured person dies during the term of the policy, the beneficiaries receive the death benefit specified in the policy. This benefit is typically paid out as a tax-free lump sum for the beneficiaries.
RENEWABILITY AND COVERTIBILITY
Some term life insurance policies offer the option to renew the coverage at the end of the term, although premiums may increase. Additionally, many term life policies include a conversion option, allowing policyholders to convert their term policy into a permanent life insurance policy without undergoing a medical exam.
Term life insurance is often chosen by individuals who want to ensure financial protection for their loved ones during specific periods, such as while paying off a mortgage, raising children, or until retirement savings accumulate. It provides a straightforward and cost-effective way to secure coverage for a temporary need.
WHOLE LIFE INSURANCE
VLG Insurance Services offers WHOLE Life insurance. This is a type of permanent life insurance policy that provides coverage for the individual’s entire lifetime as long as premiums are paid. Unlike term life insurance, which provides coverage for a specific period, whole life insurance offers lifelong protection.
Key features of WHOLE Life insurance:
LIFETIME COVERAGE
Whole life insurance provides coverage for the entire lifetime of the insured individual, ensuring that beneficiaries will receive a death benefit whenever the insured passes away, regardless of age, as long as premiums are paid.
CASH VALUE ACCUMULATION
One of the distinguishing features of whole life insurance is that it accumulates cash value over time. A portion of the premiums paid goes toward building cash value within the policy, which grows on a tax-deferred basis. Policyholders can access this cash value through policy loans or withdrawals during their lifetime, providing a potential source of funds for emergencies, education expenses, or retirement income.
Guaranteed Premiums and Death Benefit
The premiums for whole life insurance policies are typically fixed and guaranteed not to increase for the duration of the policy, providing predictability and stability in financial planning. Similarly, the death benefit is guaranteed and will be paid to the beneficiaries upon the insured’s death, regardless of when it occurs, as long as premiums are paid.
Policy dividends and participating policies
Some whole life insurance policies can receive dividends from the insurance company’s surplus earnings. Policyholders can choose to receive dividends in cash, use them to reduce premiums, purchase additional coverage, or increase the policy’s cash value. Participating whole life policies allow policyholders to share in the insurance company’s financial success.
Estate Planning and Wealth Transfer
Whole life insurance can play a significant role in estate planning and wealth transfer strategies. The death benefit proceeds are generally paid out to the beneficiaries income tax-free and can help cover estate taxes, debts, final expenses and provide financial security to heirs or charitable organizations.
Whole life policies are an attractive option for individuals seeking permanent life insurance protection, a vehicle for long-term financial planning and wealth management. They offer a dynamic combination of:
- Lifelong coverage
- Cash value accumulation
- Guaranteed premiums
- Death benefits
Call us today at (619) 324- 8825 to discuss the differences and benefits between an annuity and life insurance!
FINAL EXPENSE INSURANCE
VLG Insurance Services proudly offers our clients Final expense options. Also known as burial insurance or funeral insurance, Final Expense coverage is a type of whole-life insurance policy specifically designed to cover the costs associated with an individual’s funeral, burial, and other end-of-life expenses. It is typically a form of whole-life insurance, offering permanent coverage with relatively low death benefits.
Final expense insurance can be a valuable financial planning tool for individuals who want to ensure that their loved ones are not burdened with the financial costs of their final arrangements. Individuals should carefully assess their specific needs and budget constraints before purchasing a final expense insurance policy to determine whether it is the most appropriate option.
Key features of Final Expense policies:
FINANCIAL ASSISTANCE TO BENEFICIARIES
The primary purpose of final expense insurance is to provide financial assistance to surviving family members or beneficiaries to cover the costs of the insured’s funeral, burial, cremation, and related expenses. These expenses can include funeral home services, caskets or urns, cemetery plots, headstones, memorial services, and any outstanding medical bills or debts.
DEATH BENEFIT
Final expense insurance policies typically offer death benefits in the range of $5,000-$50,000. The relatively small death benefit is intended to cover the specific costs associated with final arrangements.
PERMANENT COVERAGE
Final expense insurance is usually a form of permanent life insurance, meaning it provides coverage for the entire lifetime of the insured individual. As long as the premiums are paid, the policy remains in force until the insured’s death.
FIXED PREMIUMS
Premiums for final expense insurance are often fixed for the duration of the policy. This provides policyholders with predictability in terms of costs and helps them budget for the ongoing expense.
QUICK PAYOUT
Final expense insurance policies typically pay out quickly after the insured’s death, allowing beneficiaries to access funds promptly to cover immediate expenses associated with the funeral and burial.
SIMPLIFIED UNDERWRITING
Many final expense insurance policies feature simplified underwriting processes, making it easier for individuals, particularly those with pre-existing health conditions or older age, to qualify for coverage. Some policies may not require a medical exam, relying instead on health-related questions in the application.