We all must deal with the fact that at some point in time we will face the inevitable and need to prepare for end of life.  If you are trying to put some plans in place and are looking into insurance, then here are some ideas that will hopefully help you out.

Types of Insurance

There are three typical types of insurance that people look at when preparing for end of life.

1. Life Insurance

When choosing a life insurance policy it is important to pick a product that complements your retirement plan.  Here are the three typical types of life insurance.

Term Life Insurance

This is the most basic kind of life insurance.   With a term life insurance policy, you agree to pay your premium for the length of your term.  If you pass away during that period, your beneficiary receives a lump sum payment.  The death benefit amount varies depending on the size of your policy.  The advantage of this type of insurance is it is the least expensive option.  The disadvantage is that at the end of your term, you have not accrued any value.

Whole Life Insurance

Whole life insurance allows you to protect your assets while building a cash reserve to use later in life.  The advantage to this type of policy is that you know you will have money accrued in your policy at the end of your contract.  The disadvantage is that you have less flexibility in terms of your monthly or annual premium.

Universal Life Insurance

Universal life insurance allows you to accumulate extra income for retirement and also allows you to adjust your premium according to your budget.  You can choose to pay the minimum, or you can choose to pay more, all depending on your financial situation.  Part of your premium accrues interest over time.  You can access the cash value you have accrued in your policy for anything you want.

2. Funeral Insurance

People are often very surprised when they hear the cost of a funeral.  A basic funeral alone can cost up to $10,000. Many individuals do not want to put this financial burden on their loved ones when they pass away.  As a result, funeral insurance is becoming much more common.

There are many benefits to acquiring funeral insurance, including:

  • Assuring your loved ones do not have to deal with the financial burden when making your final arrangements.
  • Assuring that you leave no outstanding bills, which your loved ones will have to cover.
  • Easy and flexible terms and conditions.In addition, no health check is needed.
  • Funeral insurance is available to those between the ages of 40 and 80.
  • The premium remains constant and does not fluctuate.
  • Your loved ones will receive the payout within 24 hours of making the claim.

3. Long-Term Care Insurance

As the average life span increases, so does the chances that someday you will require long-term care.  Unfortunately, most individuals are not prepared for the cost associated with this possibility.  If this is a concern then you should look into long-term care insurance.  Long-term care insurance covers many of the costs associated with nursing homes, assisted living, or in-home care – any expenses that are not covered by Medicare.

When is the Best Time to Buy Insurance

The simple answer is now.  The older you are when looking for insurance the higher the premiums.  It is especially important to get the insurance before you turn 65.

Take the time to do some research, talk to the experts, and determine just what type of insurance (or possibly what types of insurance) best suit your financial budget today and provide the best coverage for you and your loved ones in the future.