Many people put off buying burial insurance or final expense life insurance because they think death is a long way off and the monthly payments are better spent on other expenses. However, buying burial insurance early in life has its advantages. One obvious advantage is a lower price, and the price you start with is the price you keep forever. There is also a less obvious advantage. A product called “limited pay whole life” is usually unaffordable late in life, but it can be affordable earlier in life. Limited pay whole life is similar to making a car payment or mortgage payment because payments only have to be made for a set number of years before it is paid in full. With this type of product there is a finish line to making payments (usually 10 or 20 years), and after that you’re covered for the rest of your life without making any more payments. Lets say you are 45 years old and you don’t want to be paying on a life insurance policy when you retire at 65 because you’ll be on a fixed income. In this case, a limited pay whole life policy is the perfect solution. A policy started at age 45 can be paid in full by age 65. The 65 year old has life insurance coverage forever and doesn’t have to make payments in his or her retirement years.
Limited pay whole life is also good for children. Parents can purchase this type of policy for their children and have the policy paid in full in 10 or 20 years. Its one more way to make sure your children are financially taken care of, and your children will do the same for their children. It creates financial security for generations. We love questions, so please contact us if you have them.