Understanding Whole Life Insurance

Whole life insurance provides lifelong coverage with fixed premiums, guaranteeing a payout (death benefit) to beneficiaries whenever you die, as long as premiums are paid. A portion of each payment builds a tax-deferred cash value that grows over time, which you can borrow against, take as a loan, or use to supplement retirement income. It combines guaranteed protection with a savings/investment feature, unlike temporary term life insurance. 

Key Man Life Insurance

1. The business purchases the policy: The company applies for and pays the premiums for the insurance on the "key person".

2. The key person is the insured: The key person is the individual whose life is insured by the policy.

3. The business receives the death benefit: If the key person dies, the business receives the lump sum payout from the policy.

Final Expense Insurance

Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance, designed to cover end-of-life expenses. These expenses can include funeral costs, medical bills, and other debts, providing a financial safety net for loved ones after a person's passing. 

Examples of Living Benefits

Terminal Illness Rider:
If the policyholder is diagnosed with a terminal illness with a limited life expectancy, this rider allows them to access a portion of the death benefit while still alive to help cover medical expenses, debt, or other needs.

Chronic Illness Rider:
This rider allows the policyholder to access a portion of the death benefit if they are diagnosed with a chronic illness that significantly impairs their ability to perform activities of daily living.

Critical Illness Rider:
This rider pays out a portion of the death benefit if the policyholder is diagnosed with a critical illness, such as a stroke, heart attack, or cancer.

Accelerated Death Benefit:
Some policies offer an accelerated death benefit, which allows the policyholder to access a portion of the death benefit while alive, typically if diagnosed with a terminal or chronic illness.

Long-Term Care Rider:
This rider provides benefits to help cover the costs of long-term care, such as nursing home or assisted living.

Mortgage Protection

Mortgage protection insurance, also known as mortgage life insurance, is a type of life insurance designed to pay off the remaining balance on a mortgage if the policyholder dies. It's essentially a way to protect your loved ones from the burden of paying off the house if you are no longer able to.

Here's a more detailed explanation:

• How it works:
  Mortgage protection insurance works like a regular life insurance policy, but the beneficiary is the mortgage lender, not your family.

• Benefits:
  The main benefit is that it helps your family avoid the financial burden of a mortgage in the event of your death.