Why Life Insurance?
Who wants to leave the burden of their final expense on their loved ones? Hendricks Insurance Agency Inc., is here to give you peace of mind! We handle this part of your life so you don’t leave any worries behind.
The purpose of life insurance is to develop a complete investment plan that will protect your loved ones when you are gone. This will provide your family with the proceeds needed at the time of your death. Your beneficiaries can use life insurance to pay bills, funeral expenses, education expenses, retirement plans, and outstanding debt (i.e., mortgage, credit cards, etc.).
Who wants to leave their loved ones relying on crowdfunding like GoFundMe or requesting help from friends and family to meet your final expense needs? Let’s be real: this is not a solid way of protecting your loved ones when you are gone. In times of intense stress and heartache, it’s comforting to know that life insurance funds are available.
Types of Life Insurance
Whole Life Insurance
Whole life insurance is a form of permanent life insurance. It is life insurance that stays in effect until the person reaches age 100. Whole life insurance is like term insurance, but it also has a cash value or bank account. The cash value is defined as the money or premium you pay every month which builds and will equal the amount you choose as death benefit by the time you reach age 100.
Term Life Insurance
Term life insurance is the cheapest type and the easiest to understand. Term life insurance provides a predetermined death benefit and covers you for a predetermined number of years, usually five to 30 years. The annual premiums are fixed and are based on your health and life expectancy at the time you apply for the policy.
Universal Life Insurance
Universal life insurance, like whole life insurance, is a form of permeant life insurance. That means it is a type of life insurance that provides a death benefit and a cash value where the funds can grow tax-deferred. It also earns a determined interest rate that builds, which is an added incentive over whole life insurance.
Universal life policies provide the flexibility to pay more or fewer premiums in certain guidelines. Those premiums are usually less expensive than normal whole life insurance policies.
Final Expense Insurance
Final expense insurance is also known as burial insurance. Final expense insurance is used for covering the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. These policies are permeant and are usually $30,000 and below in value.