I’m interested in covering funeral cost and having a little extra for my mom just in case.
I am open to both Term and Whole life if the numbers make sense. I am even willing to pay a year’s premium up front.
PLEASE ADVISE
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Term insurance is a bad idea at this age. The discounts available for younger people are starting to fade. If your father buys a 10-year term and lives to 76, what happens then? Continuing the term won’t be affordable and would only make sense if he’s critically ill, and permanent insurance would then be even more expensive.
Universal life insurance with a lifetime no-lapse guarantee is your best option. It’s essentially permanent insurance and the most affordable way to buy a life insurance policy that won’t lapse as long as you pay the required premiums to maintain the no-lapse guarantee.
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Based on the financial goals you mentioned, a permanent whole life insurance policy would likely be the best option. There are simplified issue products available (no exams or health records needed) that your father could probably get approved for.
You can check out this site for more information: Burial Insurance Pro.
Good luck with your search!
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A final expense whole life policy typically offers a maximum amount of $20,000 to $25,000. If he wants more coverage, Illinois Mutual offers up to $50,000. I also strongly recommend avoiding anyone who DMs you trying to solicit business.
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Instead of Life Insurance, why Don’t you just put aside some money in a MF every month. Once you reach your target there you can stop.
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If the 66-year-old (God forbid) passes away unexpectedly in two years, would a monthly contribution to a mutual fund cover the funeral expenses and provide a little extra for the mother?
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I recommend a small whole life policy from a mutual company. I’m not sure what funeral costs are in your area, but a $15,000 policy can grow over the years to $20,000, $30,000, $50,000, and so on, while your monthly cost remains the same. In the worst-case scenario, if he passes away early, your immediate funeral needs will be covered at a reasonable price.
If your income level allows for it, a universal life policy with guaranteed coverage until age 121 would also be a great option.
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If you want to cover funeral costs (a permanent, lifelong need), consider Whole Life insurance. Depending on your father’s medications and health history, a simplified issue final expense policy could also be a good option. He might outlive a term policy, which could leave him too old for insurance or facing very high premiums later on.
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Just apply for a traditional insurer with Term 20 or 30 with the amount you wish. He will get approval if he is healthy as mentioned.
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I’m sure 30 year term isn’t available, probably 20 too because the insured’s age
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If someone wants a policy to cover funeral costs, why would you recommend term insurance? We all face the reality of death, and if the goal is to cover expenses that arise at that time, it doesn’t make sense to choose a policy that could potentially expire before then.
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This is a permanent policy that provides coverage for your father’s lifetime. It can be more expensive but builds cash value over time and guarantees a death benefit.
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Since your father is a non-smoker with standard health, he may qualify for favorable rates. Make sure to shop around and compare quotes from different insurers.
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Speaking with a licensed insurance agent can help you navigate options and find the best policy for your father’s needs.