Final expense insurance is a specialized form of life insurance that covers funeral and burial expenses. It provides a smaller amount of coverage, typically ranging from $5,000 to $50,000. Final expense insurance is sought by individuals who want to ensure their loved ones are not financially burdened by end-of-life costs.
Whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured, as long as premiums are paid. It offers a death benefit to beneficiaries upon the death of the insured, along with a cash value component that accumulates over time. Whole life insurance policies typically have fixed premiums and guaranteed cash value growth, making them a popular choice for long-term financial planning and estate protection.
Term life insurance provides coverage for a specific period, typically ranging from 5 to 30 years, offering a death benefit to beneficiaries if the insured dies during the term. It is known for its affordability and straightforward structure, with premiums generally lower compared to permanent life insurance policies like whole life. Term life insurance is often chosen to provide financial protection during a specific period of high financial responsibility, such as raising children or paying off a mortgage.
Indexed Universal Life Insurance (IUL) is a type of permanent life insurance that offers a death benefit along with a cash value component. Unlike traditional universal life insurance, the cash value in an IUL policy can grow based on the performance of a stock market index, such as the S&P 500. IUL policies provide flexibility in premium payments and offer the potential for higher cash value accumulation, making them popular for individuals seeking both insurance coverage and an investment alternative with growth opportunities.
Fixed indexed annuities are financial products that offer a combination of features from both fixed and variable annuities. They provide a guaranteed minimum interest rate, like fixed annuities, but also offer the potential for higher returns linked to the performance of a stock market index, such as the S&P 500. Fixed indexed annuities are often chosen by individuals seeking a balance between principal protection and the opportunity for growth in a tax-deferred retirement savings vehicle.