This article will talk about life insurance policies, what they are, how they work, the costs of different whole life insurance quotes and how much a $15,000 life insurance policy premium varies with age.
What is whole life insurance?
With life insurance, you purchase a policy from an insurance company. The policy requires that you make payments to your insurance company and when you pass away your beneficiaries receive a lump sum from the insurance company. This payment may have to be made for a few years or your whole life, it depends on the type of life insurance you bought. You can nominate anyone to be a beneficiary, friends, loved ones, family members, etc. You can have as many beneficiaries as you want.
The main purpose of life insurance is to provide financial security to your dependents, family, loved ones, etc. after you are no longer with them. This way they can maintain their standard of living. The proceeds from the insurance policy can be used to replace income, pay for college, purchase a house, etc. Life insurance has different types and whole life insurance is one of them.
Most life insurance policies have the following three main components:
The amount you pay the insurance company for your coverage. It is the cost of the insurance policy. You have the option of paying it annually or more frequently, if you prefer.
- Death Benefit
The amount the insurance company pays your beneficiaries when you pass away. The death benefit amount depends on the insurance policy you bought. It is mostly paid as a tax free lump sum. It is also known as face value.
- Cash Value
With whole life, some of the premium payments you make go to a separate account, the cash value. This account servers a savings account. The cash grows here, tax deferred over the decades and you can withdraw from it during your life. The insurance company keeps the cash value on your death. Your beneficiaries only get the death benefit, unless you bought a rider that specifies that both be given to the beneficiaries.
A whole life insurance quote covers you as long as you live provided you pay your premiums. The policy never expires, regardless of age or health and the premiums never increase.
What is burial insurance?
Burial insurance is a type of whole life insurance policy. It is also known as funeral insurance and final expense insurance. Burial insurance is designed specifically to take care of unpaid bills, debts, mortgages, student loans, business loans, funeral and burial expenses, and other end of life expenses.
Most burial insurance companies do not require any health exams and have quick approval rates, unlike other types of life insurance.
When purchasing funeral insurance keep in mind that the premiums never increase. It is a type of whole life insurance. There are many companies out there that claim to be funeral insurance but have increasing premium rates over the course of the policy.
$15,000 life insurance quotes
This section will share the cost of some whole life insurance quotes within $15,000. The costs listed below are all taken directly from the insurers.
When going through these $15,000 life insurance policies keep the following in mind.
- Tell your insurance provider, agent or broker everything about your health! It plays a major role in determining the cost of your whole life insurance quotes.
- If you have smoked you will be charged higher premiums as these rates are for people who do not smoke cigarettes or have not smoked within at least the past year.
AIG only sells guaranteed life insurance. Guaranteed life insurance is a type of life insurance. It offers instant coverage and asks no health questions and requires no medical exam. But it comes with the following:
- Higher premiums
The company is taking a greater risk insuring you
- Two year waiting period
The waiting period means that your beneficiaries will receive the full death benefit if you pass away 2 years after the policy. If you pass away during the first 24 months of the policy, they will only receive the premiums and a little interest.
- Royal Neighbors of America
|Age||Female Non Tobacco||Male Non Tobacco|
- Sentinel Security Life
|Age||Female Non Tobacco||Male Non Tobacco|
Are $15,000 burial insurance policies a good idea?
How do you decide if $15,000 life insurance policy is a good idea? Here are some things you need to consider when deciding coverage.
- Will the amount be enough to pay off your debts or loans and still leave something behind for your family?
- Can you afford the premiums of the whole life insurance quote? It is a complete waste of money if you drop the policy after some time because you can’t afford it.
- Will a $15,000 life insurance policy cause family drama? If you feel it will opt for a smaller coverage that will only cover your end of life expenses.
How do I choose the best policy?
People often only focus on the rating and stability of the insurance company when purchasing a burial insurance policy. Though it is important, you need to keep in mind the following as well.
- Purchase the cheapest policy from the ones that meet your requirements.
- The policy offers immediate coverage.
- Avoid medical exams. If a provider asks for any type of exam it means you will be probably be charged higher premiums.
- Purchase through an insurance agent or broker, they represent many insurance companies and so have more options, that way you can choose a policy that is right for you.
- Avoid guaranteed life insurance. Tt has a two year waiting period and higher premiums.