The Final Expense Alternative

We have all seen the ads on TV for Final Expense insurance, which helps you pay for burial expenses. Most of these ads are for whole life insurance and can be more expensive than you'd expect. And most of the time the coverage is not enough.

When calculating final expenses, most people just consider the cost of a funeral. However, a missing cost are costs associated with dying. Many people don't just die suddenly. There may be a long illness or accident, resulting in a hospital stay and the ensuing medical bills. Not to mention other fees like attorney fees and meals (some like to eat at funerals). 

If someone is relatively healthy they can purchase a Guaranteed Universal Life (GUL) policy which may require some health underwriting, but can save a lot of money in premiums compared to the "guaranteed issue" policies seen on television. Not a lot of insurance carriers still offer GUL's but we have access to the ones that do. 

Let us help you by setting a phone appointment for a short conversation. We are your "friends with living benefits".

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!

Indexed Universal Life: Combining Life Insurance and Market Potential

Indexed universal life (IUL) insurance is a unique type of life insurance that blends the security of a guaranteed death benefit with the growth potential of the stock market. It's a popular choice for people who want to protect their loved ones financially while also building cash value for the future.

Here's a closer look at some of the key benefits of IUL insurance:

• Growth Potential: Unlike traditional life insurance, IUL policies allow your cash value to grow based on a market index, such as the S&P 500. This means your cash value has the opportunity to grow significantly over time, potentially outpacing inflation and other savings vehicles.
• Downside Protection: IUL policies typically come with a floor rate of interest. This acts as a safety net, ensuring your cash value never loses money even if the market experiences a downturn.
• Flexibility: IUL offers flexibility in terms of premium payments and death benefit amounts. You can adjust these elements as your life circumstances change, ensuring the policy remains aligned with your needs.
• Living Benefits: Many IUL policies offer living benefits riders. These allow you to access your cash value while you're still alive, for purposes like critical illness or long-term care.
• Tax Advantages: The cash value in your IUL policy grows tax-deferred. This means you won't pay taxes on any gains until you withdraw the money. Additionally, any death benefit payout to your beneficiaries is typically income tax-free.

Here are some additional points to consider:

• Complexity: IUL policies can be more complex than traditional term life insurance. It's important to understand the features, fees, and riders associated with a policy before you commit.
• Costs: IUL policies typically have higher premiums than term life insurance due to the potential for market growth and added flexibility.
• Not a Get-Rich-Quick Scheme: While IUL offers the potential for higher returns, it's not a guaranteed path to riches. The stock market can be volatile, and there's always the risk of losing money.

IUL can be a valuable tool for those seeking a comprehensive insurance and savings strategy. However, it's not a one-size-fits-all solution. If you're considering IUL, it's important to consult with a qualified financial advisor to determine if it's the right fit for your financial goals and risk tolerance.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!

What Are Living Benefits In A Life Insurance Policy?

Life insurance is typically thought of as a way to provide financial security for your loved ones after you die. However, some life insurance policies also offer living benefits, which are features that can provide financial assistance to you while you're still alive.

There are many different types of living benefits, but some of the most common include:

• Accelerated death benefits (ADB): This type of living benefit allows you to access a portion of your death benefit while you're still alive if you have been diagnosed with a terminal illness. The amount of money you can withdraw will depend on the policy, but it typically ranges from 50% to 100% of the death benefit.
• Critical illness riders: These riders provide a lump sum payment if you are diagnosed with a specific critical illness, such as cancer, heart attack, or stroke. The amount of money you receive will depend on the policy, but it can be used to cover medical expenses, lost income, or other costs associated with your illness.
• Chronic illness riders: These riders provide a monthly income or lump sum payment if you are diagnosed with a chronic illness that limits your ability to work or perform daily activities. The amount of money you receive will depend on the policy, but it can be used to cover living expenses, medical costs, or long-term care.
• Return of premium rider: This rider ensures that you will receive all of the premiums you paid for your life insurance policy if you don't die during the term of the policy. This can be a valuable benefit if you outlive your policy, as you will have received the death benefit without having to pay any premiums.
• Disability waiver of premium rider: This rider allows you to skip your life insurance premiums if you become disabled and unable to work. This can help you keep your life insurance coverage in place even if you can't afford the premiums.

Living benefits can be a valuable way to supplement your income or pay for expenses if you become seriously ill or disabled. If you're considering buying life insurance, it's important to compare policies and find one that offers the living benefits that are most important to you.

Here are some additional things to keep in mind about living benefits:

• Living benefits are typically available as riders, which are additional features that you can add to your life insurance policy for an additional premium.
• The terms and conditions of living benefits vary from policy to policy, so it's important to read the fine print before you buy a policy.
• Living benefits may reduce the amount of your death benefit, so it's important to factor this into your decision when choosing a policy.

If you have any questions about living benefits, leave them in the comments section below or schedule a short phone with one of our licensed agents.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!