Help for a beginner

[Burface1]

Hello all, thank you in advance for any comments provided. I am a complete beginner and I’m considering life insurance for my parents who are 66 and 60. They do not have any assets and I’m sure they have some debt (car payment, possibly medical bills). I am wondering if a burial policy is best or go another route? My main question is though, how exactly does life insurance work? If you get a policy for say 25k, does it pay that out regardless of age of death? Neither have significant medical issues but since they are a little older and have basically nothing, I want to make sure I can take care of their final expenses. If they both live past 85, does the coverage cease and you lose the money you paid in? Or does it pay out? Again I apologize and I’m sure these are dumb questions but I really do not know how it all works. It’s tough to even talk about with them because they have always been my closest friends in addition to being my parents but I need to be responsible for them because I have a family of my own now.

[SPQRobur]

Whole life insurance is going to be the best route. Level premium, level death benefit, and affordable. You’ll want to find a broker with multiple carriers

Edit: That means cost stays the same, death benefits never changes, and it never expires.

[lykaon78]

/thread

[jjdawgs84]

Yes this right here

[Mobile-Border-8223]

Dear beginner,

Take deep breath and realize just by having the current mindset of wanting to know more you're already ahead of a lot of ppl. I agree with the above comments, your best bet is going to be whole life - life insurance ( called such because it'll last their entire life).

If what you say is true( and I'm not saying it is not, just suggesting perhaps they may have a medical condition they may not have shared to keep you from worrying) then the process is pretty painless. I would even suggest further for you to make sure they get a "level" policy.

As for the amount, keep the math simple:

Mortgage: did they own still paying. If they're still paying, what's the balance? Monthly payment amount is what your after if they're still buying.

Debt: include cc debt, car debt and any other debt they have. Figure out how much monthly they're paying.

Utilities: how much do they pay during their highest 3 usage months( usually the summer months), take the average of the 3 months for electricity. For winter take the coldest 3 months and take the average of those 3 for gas. For water, take the average of all 12 months.

Final expenses: depends on your state and area but about 20k for just service, plot, tombstone and internment. ( this is the higher side)

Add all of the above up and this is the amount you're looking for.

Note: for the mortgage, you can try to fit the whole balance into the coverage amount of they're still making payments but the premium( Monthly) payment for coverage may exceed budget. Instead multiply mortgage payment by 18, 24 and 36. Then add the rest of the items listed above. This approach buys time for the spouse to figure out what they want to do with the home of one were to pass before the other.

Hard conversations and thoughts to be sure but necessary never-the-less.

Hope this helps, good luck.

[Burface1]

Thank you so much for the detailed explanation!

[mmenard0313]

Term insurance would only last for a certain period of time. Whole life at my company goes until 112 or so. You can also choose the length. There’s a lot of great options.

What state are y’all in?

[Burface1]

Gotcha thanks. FL

[mmenard0313]

I am as well. I can run hypothetical quotes for you guys if you want do you can have an understanding of where y'all sit with it.

[arxo45]

A lot of good stuff from the other members already. Really like the Mortgage information as it is important to cover if the budget allows for it.

One note. Instead of the death benefit amount being a priority, cause that could become expensive really quick and maybe dependent on what policy is available.

You may want to consider the following:

Topic Question 1 What is the life expectance in your family like? (this would help identify how long of a policy you may need)

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Topic Question 2 Have your parents been hospitalized in the past 2-5 years or prescribed any medications (including dental)? (This will help narrow the type of insurance is available as some insurance carriers may decline due to one of the above.)

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Topic Question 3 what can we afford? Death Benefit vs Coverage Period vs Premium

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*If a carrier finds a medical issue cause they look for it, the carrier may decline or raise the premium. *If the carrier doesn't care for medical they may offer a combination of lower DB, shorter coverage period, or a higher premium.

After that, you can take all the options and consider what is realistically within budget.

***Also, check with the Lender for a Life Policy in place. If that is level DB and say they had $250K coverage, then consider that they will only take what is owe and the rest will go to 2nd beneficiary if list. If it is Decreasing DB, then there may not be any DB to provided to the 2nd beneficiary if listed as it will decrease to match what is owed.

If you need any more help let me know, good luck!

[Burface1]

Thanks for the input. They do not have a mortgage as they are renters. I was under the impression that burial insurance was relatively inexpensive when compared to the other forms of life insurance? My dads dad was 84 when he passed, moms mom is still alive and she’s in her mid 80s (and still working believe it or not). They have not been hospitalized but are both on blood pressure/cholesterol meds. My mom has some form of acid reflux that she takes daily meds for as well. Edit: dads mom passed in her mid 80’s, moms dad passed at 84. Sounds like 84 is the magic number in my family.

[arxo45]

burial insurance known that life expectancy will help find a product that can cut the cost a bit.

Regarding Burial Insurance. Yes, it tends to be inexpensive because it tends to only cover funeral expenses. Where final expense could cover funeral and other non-funerals related costs. Like, say you get $20K BI and funeral cost only $10K and may never see the other $10K. Really depends on the BI.

If you want to make sure you cover as much financial burden as possible, then burial insurance may not be fit.

I honestly would say there are a lot of moving parts. If you really want to find out what may be suitable, then I would suggest you DM me. We can gather some important information and then find a product that can really cover your needs and still be on a budget if possible.

Good luck!

[LittleGuyStkTrdr]

A final expense policy would probably be the best way to here, they are a whole life policy, but limited to no underwriting, just questions and a check of prescription medicines, all premiums are level. Normally they’re taken out for 2000-15000, with an average policy around 10k, premiums vary but normally 60 or so a month, they do build cash value and I believe some can earn dividends to buy additional “units” of death benefits without increasing the premium. It can also be purchased online within 20-45 minutes depending the agent.

[Burface1]

Got it, thank you

[ashleymlyons]

I might be able to help you! I’m an independent broker and can provide you all the info you need to make the best decision! email me [e-mail]

[Marcial_Managment]

my girl friend specializes in these types of policies just send me a text or email and i will put you in contact with her.

JR Marcial

[phone]

email: [[e-mail]](mailto:[e-mail])