This article will discuss what life insurance policies are, how they work, the cost for different whole life insurance quotes and how much a $15,000 life insurance policy premium may cost with age.
What is whole life insurance?
Life insurance involves buying a policy from an insurance provider. You pay a certain amount to the insurance company. This amount is paid for as long as your policy requires, it could be a few years or your entire life. When you pass away, the insurance company pays your beneficiaries a lump sum. Your beneficiaries can be friends, loved ones, family members, etc. you can have as many beneficiaries as you want.
The purpose of this amount is to provide your dependents, family, loved ones, etc., financial security after you pass away. The proceeds from the insurance policy can be used as income replacement, for paying college tuition, purchasing a house, etc. Life insurance has different types. Whole life insurance is one of them.
Most life insurance policies have the following three components:
This is the amount you pay the insurance provider for your policy. The premium is the cost of coverage. You can pay it annually or more frequently if you like.
This is the amount the insurance provider pays your beneficiaries on your death. The death benefit amount depends on the coverage you opted for. It is often paid as a tax free lump sum. It is also called face value.
Some of the money from the premium payments goes to a separate savings account, the cash value. Here is grows tax deferred over the decades and you can even withdraw from it during your life. The cash value stays with the insurance provider on your death. The beneficiaries only gets the death benefit, unless you purchase a rider that specifies that it be given to the beneficiaries.
A whole life insurance quote covers you your entire life, as long as you make the premium payments.
What is burial insurance?
Burial insurance is a type of whole life insurance. It is designed specifically to take care of your end of life expenses like unpaid bills, debts, business loans, mortgages, student loans, funeral and burial expenses, etc. Burial insurance is also called funeral insurance and final expense insurance.
Unlike other life insurance, burial insurance usually requires no medical exams and has very quick approval rates.
Since it is a type of whole life insurance, the premiums never increase. But be careful, there are some so called final expense insurance companies that have premiums with rates increasing over time.
The policy can never expire, regardless of age or health condition, as long as you pay your premiums.
$15,000 life insurance quotes
This section will cover the different whole life insurance quotes within $15,000. All the prices stated below are taken directly from the insurance providers.
Keep the following in mind with regards to these $15,000 life insurance policies.
- Your health will play a major part in determining the cost of whole life insurance quotes, so tell your insurance provider, agent or broker everything!
- These rates apply to people who have not smoked cigarettes within the last one year. If you have smoked you will be charged higher premiums.
AIG only sells guaranteed life insurance. Guaranteed life insurance asks no health questions and offers immediate coverage. This life insurance which comes with higher premiums and a two year waiting period. The waiting period means that if you pass away during the first 2 years of the policy, your beneficiaries will only receive the premiums and a little interest. They receive the full death benefit if you pass away 2 years after the policy.
2. Royal Neighbors of America
Female Non Tobacco
Male Non Tobacco
3. Sentinel Security Life
Female Non Tobacco
Male Non Tobacco
Are $15,000 burial insurance policies worth it?
Is $15,000 life insurance policy too little, too much or just right? So how do you decide? Here are some factors you should consider when deciding how much coverage you want.
- Is this amount enough for your goals? Will it pay off your debts or loans and still leave something behind for your loved ones?
- Can you afford it? There is no point in purchasing a whole life insurance quote only to drop it a few months later because you are unable to pay the premiums. This is a complete waste of money. You can always start with a small coverage and then build it up over time.
- Don’t forget that money can bring out the worst in people. If a $15,000 life insurance policy is too much and will leave money behind for your family which may result in family drama, go for a smaller coverage that will only cover your end of life expenses.
How do I choose the best policy?
When purchasing a burial insurance policy it is often advised that you go for financially reliable and stable companies. Though this is important, it shouldn’t be the only criteria. Keep the following things in mind as well when purchasing an insurance policy.
- The insurance company offers policies at cheaper rates compared to other companies
- A financially secure insurance company underwrites the insurance company
- The policy offers coverage as soon as possible
- Avoid medical exams. If a company requires any type of exam, know you will most probably be charged higher premiums. Most final expense insurance companies only require you filling out an application form and nothing more.
- Work with an agent or broker, they have more options as they represent many insurance companies, thus you will be able to choose a policy that is right for you.
- Avoid guaranteed life insurance. Though it does not ask any questions, it comes with a two year waiting period and higher premiums.