What is Final Expense Life Insurance? Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses when you pass. A final expense policy is also known as burial or funeral insurance and is popular with seniors. Most final expense plans have these features: Whole life insurance – no expiration if premiums are paid Cash value – insured may be able to take out a policy loan Fixed premiums as long as they’re paid Simplified issue – usually no medical exam is required, just health questions on the application Easy application process Fast approvals – coverage can often be issued in days Contents Final Expense Life Insurance For Seniors Final...
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While term life insurance doesn’t build cash value, other types of life insurance work differently. Whole life insurance, which is also called permanent life insurance, for example, offers a death benefit but also builds cash value you can borrow against. In that sense, this “cash value life insurance” serves multiple purposes. Not only does it protect your family in the event of your death, but it can serve as a financial resource you can lean on when it makes sense. But, should you borrow against cash value life insurance? Maybe, but maybe not. You see, borrowing against cash value life insurance is not a black and white issue – it’s very much dependent on individual...
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Q. My wife and I have had a 20-year pay life insurance plan with London Life for several years. The plan has been paid for by dividends after 20 years of premiums. We are both 60 years old now, with two adult children ages 24 and 27, and both have their own careers. The plans are both worth $60,000 each as life insurance and they both have a cash value of $30,000 each. Would it be better to take out the cash portion and invest it—or to leave the plans as is? We both have pretty much maxed out our RRSP and TFSA plans. My wife is retiring this year, and I am still working, double dipping from a previous 25-year career. A. Neil, I have to tell you, I have a whole life policy myself, and for...
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