Topping Life Insurance

Some types of life insurance were developed with a primary purpose to pay for certain things. Several products have a primary purpose to pay for final expenses, so these products are commonly referred to as final expense life insurance. This article describes the various products that fall under that category. Simplified Issue Whole Life "Simplified issue" means there are less underwriting requirements than a traditional whole life policy. No medical exams or bodily fluids required. Instead, you'll see about a dozen yes/no medical questions on the application. This product offers as much as $50,000 coverage. The maximum amount of coverage depends on the company as well as the age and health condition of the proposed insured. It's important to note that $50,000 maximums are uncommon. Most consumers will encounter maximums of $25,000 if they are looking at a simplified issue product. Severe health conditions not only affect the maximum coverage, but the company may also...

Internet articles on this subject are heavily biased. Most authors with a bias prefer term life in most situations. However, I will try to be as unbiased as possible in my comparison of the two products. What is Term Insurance? The phrase "term insurance" can be thought of as shorthand for "terminating insurance." In other words, this insurance isn't meant to last indefinitely. The more precise reason for being called term insurance is because of its term limits. The term limit is the number of years before the policy ends its guaranteed premiums. In other words, the insurance company promises not to increase your premiums for the length of your term. Once a term limit is reached, all bets are off. Insurance companies can then jack up the price with each renewal. Most people do not keep their term policies for very long after reaching a term limit because of drastic price increases. To be fair, the price increases do not start off very dramatic, especially if th...