HLI - Life Insurance Lesson

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Life Insurance

Introduction

Life insurance is always a hard thing to discuss and decide upon. However, you will want to make sure that you and your family are prepared in case something does happen. A life insurance policy covers death expenses such as funeral arrangements. It helps to pay off any debt left by the policyholder and can provide funds for the family to continue on and maintain their standard of living.

If you are still unsure if you might need life insurance as an adult, take a look at this infographic on the costs of a funeral. It can be so expensive!

Average Funeral Costs Professional Fees include funeral company's or director's labor costs, mortuary care (embalming), transport of the body. Caskets. Wooden caskets range from $4000 to $9000. Metal caskets range between $7000 and $28,000. Ceremony includes clergy for the service which are usually between $100 and $200. Celebrants usually charge between $150 and $300 for a service. Cremation services range from $3,500 to $9,000. The burial services can range from $5,000 to $20,000 +. Disbursements include death and cremation certificates, newspaper obituaries, flowers, memorial attendance books, orders of service booklets, refreshments, live music. Burial includes burial plot and digging fees. A typical cost of a burial funeral could be $9.075.

Funerals can be surprisingly expensive once you take into account all of the expenses, from caskets, burial plots, fees and other miscellaneous expenses. When you pass on, you don’t want to leave your loved ones worrying about finances, but funeral insurance can help pay for all of these costs, and reduce at least one part of their troubles.

In Your Notebook: Please take down important notes, such as formulas, and attempt the practice examples on your own before viewing the solutions!

In Your Notebook: Please take down important notes, such as formulas, and attempt the practice examples on your own before viewing the solutions!

Estimating Premiums

Premium charts are often used to help estimate the annual cost of a life insurance policy. View the example and then attempt the three practice examples on your own.

There are lots of factors to consider when selecting life insurance.

Can you list some of those factors now in your notes?

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