Yours, with our thanks for answering 2 quick LTC questions.
What is whole life insurance?
From the National Association of Insurance Commissioners
Of which, I am not one. In this justifiably regulated industry, as a matter of best-practice and compliance, I see no need to impress anyone with my own terminology definitions, when we can simply go to the authorities to define those terms for you.
"Whole Life Insurance covers you for as long as you live if your premiums are paid.
You generally pay the same amount in premiums for as long as you live, and that is sometimes referred to as "permanent" life insurance.
When you first take out the policy, premiums can be several times higher than you would pay initially for the same amount of term insurance.
But they are smaller than the premiums you would eventually pay if you were to keep renewing a term policy until your later years.
Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65.
Premiums for these policies are higher since the premium payments are made during a shorter period."
"You may be thinking of buying a policy where cash values, death benefits, dividends or premiums may vary
based on events or situations the company does not guarantee (such as interest rates).
If so, you may get an illustration from the agent or company that helps explain how the policy works.
The illustration will show how the benefits that are not guaranteed will change as interest rates and other factors change. The illustration will
show you what the company guarantees. It will also show you what could happen in the future.
Remember that nobody knows what will happen in the future. You should be ready to adjust your financial plans if the cash
value doesn’t increase as quickly as shown in the illustration. You will be asked to sign a statement that says
you understand that some of the numbers in the illustration are not guaranteed."
Life insurance for one's whole life makes the most sense, does it not, since a final expense insurance policy is to pay for end of life expenses?
However, it is a big mistake to only consider funeral expenses as final expenses. Family expenses also must be considered:
Adamsson Associates has developed a simple final expense calculator for you to download and save, then use, either as a fillable form, or to print out and write on.
IMPORTANT: The final expense calculator will only be fillable after you download, and then open with whatever pdf reader application is installed on your system.