Tips from a Huff-Cook Broker: Lake Country Insurance Agency

Insurance tip for January/February 2003:

What is the difference between whole life insurance and term life insurance and burial insurance?
Read the tip

TERM LIFE
There are many variations of term insurance. One is Level term (10, 20, 30 year term), which stays the same level premium during the 10, 20 or 30 year period. When you purchase term, you are protected only for the period of time you choose (example: 10 years).
Note: Before the term is up, you either let it run out or convert it to a permanent whole life policy or lose it! (The premium for term is lower than whole life because you really don't own it past the term you have chosen.)
When you convert it to whole life, you will pay a much higher premium for two reasons:
1) It is figured at your present age (not at the age you started the term policy)
2) The new policy is permanent and it then starts building cash value. Part of your new premium is being saved for you plus interest.
(Call us for examples and a quote)

WHOLE LIFE
This is an interest-sensitive whole life policy that does not increase in premium. It is a permanent policy that can't be canceled (except for non-payment of premiums). These policies gain in cash value over the years (can be cashed in in later years or the cash can be accumulated to convert to a paid-up policy of a lesser value or continued with a possibility of increasing the face amount of the policy.

BURIAL INSURANCE
An unusual specialty protection that has the following advantages:
1) Can be purchased in small amounts from $1000 to $25,000.
2) Can be life time pay or paid up in 5, 10, 15, 20 years.
3) Claims are usually settled within 24 to 48 hours after receiving the policy and death certificate.
4) In leiu of cash value, there are extended pay benefits.
5) Some policies have cash value, some don't.
6) Physical exams are not necessary (based on health questions.)
7) There are policies for those that have health problems, which in some cases, goes into benefit as soon as issued. For those with more serious health problems, there may be a waiting period (usually 2 years). If death occurs before the waiting period is up, ALL principal money is refunded plus as much as 10% interest on principal amount paid. Even these policies can be paid up in 5, 10, 15, 20 years or paid up in one lump sum. (Example: a $5000 policy may cost $3000 cash (paid up). This all depends on the age of the applicant.

Let us give you a quote: Email us or call 804-447-8023.

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