LIFE INSURANCE

Final Expense, Term Life, and Universal Life Insurance Carriers

Final Expense Insurance Information

Final expense insurance is a product designed to help cover final expenses such as the costs associated with funeral and burial expenses, probate fees or other financial obligations that your client’s family may face in the event of death. Many funeral expenses run over $10,000 and can create a significant burden on loved ones.

Final expense insurance is targeted to clients who desire coverage for final expenses and who don’t want to go through the hassles of full underwriting. Additionally, clients who have previously been declined for coverage with one carrier may be considered again with another.

Final expense insurance products normally don’t require formal medical examinations, so most clients qualify with little to no problems. Also, premiums are guaranteed so the investment is low risk and predictable for clients. Additional rider protections are available for added security.

For the agent, products normally offer excellent MGA commissions, electronic or phone applications, and simple underwriting. Premiums are competitive compared to other types of insurance products, so final expense insurance is definitely a product you want to have in your portfolio to grow your business.

Contact us today to learn more. Morgan Fidelity is dedicated to supporting agents with all their senior insurance marketing needs.

Term Life Insurance Information

Term life insurance provides life insurance coverage for a specified period of time. After the term ends, the client can either drop the policy or pay additional premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term life insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

Term life insurance builds no cash value, unlike permanent life insurance products such as whole life, universal life, and variable universal life. Term life insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of premium dollars if no claims are filed. Most term life insurance carriers offer additional riders that increase the insured’s protection against risk.

Though annual renewable term insurance is available, the much more popular product is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

With this type of product, the premium is the same each year, and is based on the summed cost of each year’s annual renewable term rates, with a time value of money adjustment made by the insurer. Longer terms have higher premiums because individuals are more expensive to insure as they get older. Most carriers include a renewal option and allow the insured to renew for a maximum guaranteed rate if the insured period needs to be extended.

Universal Life Insurance Information

Universal life insurance is a type of permanent life insurance based on a cash value. Premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance charge, and any other policy charges and fees which are drawn from the cash value if no premium payment is made that month.

The interest credited to the account is determined by the insurer; sometimes it is pegged to a financial index such as a bond or other interest rate index. Universal life insurance normally offers a lifetime guaranteed minimum death benefit, a tax-free death benefit, transfer of benefit to beneficiaries, a guaranteed cash surrender value, and some of the highest commissions available.