Insurance Advisors of St. Louis has recently had several inquiries about final expense life insurance. There are two types. One type is the Whole Life Insurance policy. When you purchase a whole life insurance policy, part of the premiums you pay is going toward building a cash value. If you live long enough the amount of money can grow to be a substantial amount.
Final Expense Life Insurance
The Cincinnati Life Insurance Company offers a whole life insurance policy that has some unique features and options. Since you will have a policy that is building cash value, Cincinnati Life will allow you to, if necessary, borrow against the cash value.
Other options include:
Surrender for cash. The company will pay the insured accrued cash value and terminate the policy. Continue as Extended Term Insurance. If there comes a time when you can no longer afford to pay your premiums or simply desire to stop paying the premiums you would instead be able to use your accumulated cash value and convert the policy to a term insurance policy. The individual would then be covered by a term life policy that would last for a specific period of time. The length of the term insurance policy will depend on the amount of cash value that has been accumulated. Your life insurance proposal will have a table that calculates the extended time period.
Continue as Paid-Up Insurance. Paid-up life insurance also allows for the continuation of the life insurance without paying additional premiums; however, the face value (death benefit) of the original policy is reduced. At any time during the policy, you can choose to stop making premium payments and opt for a paid-up life insurance policy. The face value will depend on the cash value at the time of the policy. No additional premiums will be paid and coverage will last until the policy anniversary date following the client’s 99th birthday.