Site Content

---

Life insurance is a guarantee that a sum of money is paid either on the death of the insured person or after a set amount of time. It is an agreement between an insurer and the policy holder that a designated beneficiary will receive the benefit in exchange for premium.

Mortgage protection is the most popular insurance that a new homeowner secures because a lot of times when a person buys a house, they go into debt. If the breadwinner in the family dies with debt that is not favorable financially for the rest of the family.

Most new homeowners think about buying mortgage protection because they don't want to leave their family burdened. They do want to leave their family a financial legacy in form of a life insurance payment that covers the amount of the mortgage in case of their death or disability. The coverage amounts involved never go down with mortgage protection and the insurance never goes up. It is a level premium payment and it's a level face amount.

There are some available riders on a policy. There are some accelerated death benefit riders, so if something happens to the client, and they have a terminal illness or something unfortunate, they can accelerate it with a chronic critical or terminal illness. This means they get a percentage of the face amount.

They can secure a family health benefit rider where something crazy happens to the person’s house. There is a way they can write a check for common carrier accidental death benefit rider that means the amount can double in the total amount, and if the insured dies in an accident then the accidental death actually lets the common carrier pay up to two times the amount and then the accidental death rider doubles it. There is also a waiver premium disability income rider is accident only. This is an important thing, so if the proposed insured gets disabled in an accident, then they the insurance carrier doesn't let them or doesn't make them make premium payments for two years so the writer provides a monthly benefit for up to two years if the insured becomes totally disabled with 180 days of accidental bodily injury or sickness.

With mortgage protection, the key thing is it is by far the most popular coverage for new homeowners. Typically, people go into debt then buy a mortgage protection policy so they don't leave debt for their family and their house is paid off so that's one less financial worry that the family has in the event of a death of the proposed insured. Foresters Strong Foundation is the main product we offer for people seeking this type of coverage.

Whole Life insurance coverage helps a family cover final expenses when a family member dies. The average funeral in America right now is $12,000. Final Expense coverage eases the financial burden placed on loved ones after a death of a family member. The coverage is permanent if you qualify and your rate never increases. Your benefits never decrease. A lot of families use final expense for Social Security income replacement in a cash accumulating account that can temporarily cover missed payments as well. A lot of times they can come in the different types like preferred, standard and basic with adjusted prices for each. There is no medical exam with whole life insurance, but the healthier you are the better your rate will be.

Typically, face amounts are dictated depending upon the carrier's terminal illness riders based on accident accelerated death benefit riders. There's no medical exam, no blood profile, no oral swabs, none of that stuff that isn’t fun for people. It is just simple basic health questions and, typically, it covers final expense. That’s any costs with funeral expenses and here's a big misconception with some people: they think that if you buy a policy for your loved one that the check goes to the funeral home. It doesn’t. It goes to the beneficiary, so whoever the owner of the policy gets to pick their beneficiary. They get to pick who gets the money, not the funeral home.

It's not subject to probate fees, other financial obligations that a family faces when losing a loved one. This is a great plan because it is the kind where benefits never go down and the premiums never go up. It's just a really standard, easy to explain plan that can be approved with a couple of health questions. There's cash value and if you miss a payment the cash can make your premium payments for you, so there's also all kinds of riders that can be added and if you do surrender at risk cash value. After a certain period of time, some companies have living benefits that live inside of it. The best final expense product we have is Foresters Plan Right.

Mutual of Omaha offers a great children’s Whole Life policy for ages 0 years old to 17. It goes from a very small amount up to $50,000. It is the most standard children's whole life plan you've ever seen in your life! Premiums never go up, the insurance amount stays the same and every single children's whole life policy generates cash value. This means you can increase your insurance amount at 25, 30, 35 and 40 years old; or when you have a life event such as you get married, adopt a kid, buy a house, etc. A lot of times, a grandparent or parent buys their child a children's whole life policy they transfer ownership so now the child owns the cash in the policy and it is building up over time.

The person or the proposed insured, AKA the child, they can use the policy they got from the grandparents or their parents and add to that. That means they never have to buy permanent life insurance again, there's very minimum health questions on the application, there's waiver premium and all kinds of cool riders you can add to the policy. It helps cover costs associated with unexpected loss. It’s great for parents looking to provide protection for a child's future insurability, you know a lot of people that run into health challenges down the road. If you have a children's whole life policy while you're young, you can add to it based on your health when you were a child and got the policy.

There is very little underwriting and very little cost, because these are whole life insurance policies for kids. It is very affordable with only two health questions. It has a guaranteed insurability rider, and it is one of those applications that the grandparents can get and the proposed insured obviously doesn't have issues because they're going to be 17 or younger. It is made for grandparents and parents to get their child set up for financial stability moving forward. It is a great way to start a permanent life insurance policy before the person really even becomes an adult.