Protecting Your Future
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Our Insurance Services
At Studdard Enterprises & Finances, we specialize in providing a range of life insurance policies tailored to meet your needs. From term life to whole life and universal life policies, we offer comprehensive coverage to protect your loved ones financially. Our experienced agents are dedicated to helping you understand your options and choose the best policy for your future. Let us safeguard your family's financial well-being today.
Services
Insurance comes in various forms to safeguard your family's future. From life insurance to health and home coverage, each type plays a crucial role in providing financial security. It's essential to understand these options to the best protection for your loved ones. Explore the different types of insurance and find the right fit for your needs.
Mortgage Protection
Mortgage protection life insurance is a type of policy that pays off the remaining mortgage balance if the borrower dies before the loan is fully repaid. Unlike a standard life insurance policy, the death benefit from mortgage protection insurance is typically paid directly to the lender, not to your designated beneficiaries.
How mortgage protection insurance works
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You purchase a policy for a fixed term, often aligning with your mortgage length (e.g., 15 or 30 years), and pay a consistent premium.
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When you die, the insurance company sends the death benefit to your mortgage lender.
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The death benefit is typically a decreasing term policy, meaning the payout amount shrinks as you pay down your mortgage. However, your premiums usually remain level.
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Some policies offer optional riders for an additional cost, which can provide coverage for job loss, critical illness, or disability.
Mortgage protection insurance vs. private mortgage insurance (PMI)
It is crucial not to confuse mortgage protection insurance with other types of mortgage-related insurance.
Final Expense
Final expense life insurance is a type of permanent, whole life insurance with a small death benefit designed to cover costs associated with a person's passing, such as funeral services, burial, cremation, medical bills, and other debts. These policies are known for their simple application process, often requiring only a health questionnaire instead of a full medical exam, and provide a quick payout to beneficiaries to relieve them of financial stress and burden.
Key Features
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Permanent Coverage:
Like whole life insurance, final expense policies last for your entire life, with premiums that typically remain level and do not increase over time.
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Smaller Payouts:
The death benefit amounts are typically lower than traditional life insurance policies, usually ranging from $5,000 to $40,000, to keep premiums affordable.
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Simplified Underwriting:
Most final expense policies do not require a medical exam; instead, applicants answer a health questionnaire.
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Direct Payout to Beneficiary:
Funds are paid directly to the chosen beneficiary, who can then use the money for any purpose.
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Graded or Guaranteed Policies:
Some policies may have waiting periods (graded benefits) before paying out the full death benefit, while guaranteed policies offer immediate full coverage with fewer health restrictions.
Benefits
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Covers Funeral and Burial Costs:
The primary purpose is to pay for funeral arrangements, caskets, cremation, and other services.
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Pays for Other Debts:
Beneficiaries can also use the funds to cover outstanding medical bills, legal fees, and other outstanding financial obligations.
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Peace of Mind:
Knowing that final expenses are covered can provide significant peace of mind to the policyholder.
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Affordable Premiums:
Smaller death benefits result in lower monthly premiums, making it a more accessible option for many.
Who Is It For?
Final expense insurance is a good option for individuals who want to ensure their end-of-life expenses are covered without placing a financial burden on their loved ones. It's particularly beneficial for those who find traditional life insurance premiums too high or who don't want the complications of a medical exam.
Annuities/ IUL
Indexed Universal Life (IUL) is a type of permanent life insurance that provides a lifelong death benefit and builds cash value, which grows based on the performance of a stock market index like the S&P 500. It offers flexibility in premiums and death benefits, features a guaranteed minimum interest rate (a "floor") to prevent losses, but also has a cap that limits potential gains. The cash value can be used for policy loans or to pay premiums, and the death benefit is paid to beneficiaries income-tax-free.
How IUL Works
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Premium Payments: You pay a monthly or annual premium.
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Policy Expenses: A portion of the premium covers the cost of the death benefit and policy fees.
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Cash Value Growth: The remaining premium goes into the policy's cash value account.
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Index-Linked Interest: The cash value's growth is linked to a chosen stock market index, such as the S&P 500.
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Market Protection:
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Floor: The policy has a guaranteed minimum interest rate, preventing the cash value from losing money when the index performs poorly.
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Cap: There is a maximum interest rate (a cap) that limits how much the cash value can grow, even if the index has a strong year.
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Key Features
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Permanent Coverage: Provides coverage for your entire life, as long as premiums are paid.
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Flexible Premiums: You can adjust your premium payments (within limits) to match your financial situation.
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Adjustable Death Benefit: You can also change the death benefit amount over time.
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Tax-Deferred Growth: The cash value grows on a tax-deferred basis, meaning you don't pay taxes on the interest earned each year.
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Access to Cash Value: You can borrow against the cash value or take distributions, which are typically income-tax-free.
BOOK YOUR CONSULTATION TODAY
OUR COMMITMENT TO YOU
Studdard Enterprises & Finances provides vital information on life insurance options such as final expense, mortgage protection, annuities, and IULs. Our goal is to inform and guide you in securing the best coverage for loved ones.