Life Insurance + Burial Trusts
What would happen to your family should something happen to you? Have you funded your final expenses? Who would pay your family's debt, living expenses and mortgage? Informed Choice Insurance Agency offers some ordinary life insurance plans and some very unique life insurance plans, including youth-life and final expense plans.
Buying life insurance enters you into a contract with an insurance company that will provide your beneficiaries with an amount of money upon your death. In return, you make payments, called premiums. The premium amount is based on factors such as age, gender, medical history, and the dollar amount of life insurance purchased.
Term life insurance
Term life insurance offers protection for your loved ones for a specified period of time—usually from one to twenty years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy; but they do not build cash value.
Permanent life insurance
Permanent life insurance policies do not expire; they are intended to protect your loved ones permanently, as long as you pay your premiums. Some types of these policies accumulate cash value.
A funeral trust is set up as a way to protect a portion of an insured’s assets to pay for funeral expenses. Funeral trusts are available to everyone up to age 99 with only one health question. A policy can be written for amounts starting at $500 in some states; the maximum amount varies by state.
Revocable trusts can be dissolved by the person who originally created it or by a designated person or entity at any time. Revocable trusts don’t receive favorable tax treatment and are not exempt from confiscation from hospitals, doctors, nursing homes and other health care providers. Medicaid spend-down rules will be imposed on the trust before Medicaid-covered nursing home care is provided.
Irrevocable trusts can’t be dissolved by the creator or any other designated entity. The funds cannot be accessed until the terms of the trust are satisfied; meaning the creator must pass away before the assets are paid out. Because of that requirement, irrevocable trusts are superior in that they aren’t subject to Medicaid spend-down rules and the assets can’t be paid out until after the trust pays for funeral expenses.