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Overview – Planning & Funding
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FINAL EXPENSE – Planning & Funding

JON D. ERICKSON  * 615-618-4505 * Jonerickson.us@aol.com * www.jonerickson.us – TN Lic. #782113

 

One day, we die.  Today, let us get everything Covered!                                                                                                      

We are committed to deliver your Final Expense Planning and Funding in the most efficient and cost-effective way.

First, to make sure things go smoothly and easily for your love ones who will be handling your financial arrangements someday, as well as give them clear direction by you in writing your wishes.  This will be accomplished by not only “funding” your end-of-life plan, but “planning” it as well, backed by the appropriate legal documents.

Second, to help save money on the funeral, burial, and/or cremation without putting any financial burden on your family and friends.

Third, to make it “cost-effective” for you.

 

THE ISSUE

A recent survey shows that 80% of people do not have the distribution of their estate planned (who gets what) for the end of your life. In addition, your final arrangements and expenses are not funded, and guided by a written plan with the appropriate legal documents. Death and the costs of dying can not only be expensive but very confusing for your survivors.  The average funeral cost is $8,508. Additional fees for cemetery, monument, flowers, obituaries, and related expenses can increase the cost to $14,858. Considering the average costs over the past 40 years and projecting at 5% inflation per year, by 2030 the cost would be $18,276.

Few people have the resources to pay for an entire funeral. And do not have a plan or the funding.  Your survivors may have to depend on their own savings, credit cards, or even loans to cover the costs.  Who will pay these costs when you die?

Families can make up to 130 decisions in the first 24 hours after your death.  Usually, these decisions are made under great pressure and sadness.  Why prepare today? Look what we can do to help. Insurance professionals provide life insurance to fund your funeral; final arrangements; and any other expenses related with your death.  Attorneys specialize in Estate Planning providing the basic documents that take effect at death.  With over 50 years of experience, Jon and Forest came together to offer a much-needed service that everyone can afford.

Your family will be thankful for your final arrangements, “Funded”, and your final affairs, “Planned”. You could spend hours reading and trying to figure out what to do. We will provide you with the key documents to do your Plan: Advanced Healthcare Directive, Durable Power of Attorney, Memorial Guide, and the Last Will & Testament. The only cost for fill-in the blank documents is for shipping and handling. We will even assist you in completing the documents. The cost for this is $75. (Please Note: About 50% of the time, your Last Will & Testament may need to be more tailor- made. In this instance we will get you an upfront cost for Forest, our attorney.

There is no fee for Jon’s services. He is paid by commission from the insurance company he represents. Jon will educate you on your options and answer all your questions regarding your Final Expense Funding. And find a plan that fits your needs and budget. (Jon represents many companies. Even if you have health issues, he will use a company that will issue a policy that is guaranteed and requires no medical questions.) The remaining part of this brochure embellishes upon some of the concepts we will be talking about. Please briefly review before we talk. Do not worry if some or all may be difficult to understand.  That is what Jon is for . . . when we are done, you will know as much as Jon as it applies to your situation, when it comes to your funding and planning needs. 

FUNDING YOUR PLAN

Funding of your final expense plan . . . we have made it simple, easy, and cost effective!   If you have had trouble getting life insurance because of your health or age, we will discuss products that will help your loved ones have protection against future financial burdens. We only offer products designed to provide coverage for a variety of applicants. The PROCESS Is simple. Those who may be overweight or have developed health issues such as diabetes. Those who have been declined from other insurance companies due to previous or current health issues. Young individuals who have had trouble obtaining insurance. Those who wish to cover their final expenses but are limited in the amount of coverage they can apply for. If you have dealt with any of these issues, or simply do not want to go through the hassles of medical exams and blood tests to purchase life insurance coverage, we have the perfect solution for your individual situation.

NO PHYSICAL EXAM . . . Eligibility is based on answers to a few simple questions.

RATES CAN NEVER BE INCREASED . . . Rates never increase, and your insurance cannot be cancelled if payments are current. (Note: 30 Day Free Look)

IMMEDIATE DEATH BENEFIT COVERAGE . . . Most people, ages 0 to 85, can qualify for immediate death benefit coverage. This is called Simplified Issue.  Even those in extremely poor health will qualify for a modified death benefit for either two or three years and full benefit thereafter. This is called Guaranteed Issue.  The Value of Life Insurance Made Simple

CASH VALUE . . . During the life of the insurance policy, cash value available for emergencies. In a worse-case scenario, your amount of insurance can be reduced, thereby reducing your monthly payment, or the cash values can buy reduced paid-up insurance.

NO MATTER WHAT YOU ARE COVERED: We represent over 40 Companies thru Senior Marketing Insurance Group. If you are between the ages of 40 and 80 regardless of your health, you will not be turned down. Final Expense Whole Life insurance offers financial protection for up to $40,000 in coverage guaranteed, with no medical exam. Your premium (payments) will never change, and your coverage can never be canceled if the premiums are paid on time. As a matter of fact, I will discuss, if you have a financial downturn, how your premiums and coverage can be modified so some coverage can continue.

Regardless, you will find Final Expense Insurance affordable, and simple way to take care of your Final Expenses. Acceptance is guaranteed; and no medical exam is required. Your premiums (monthly payments) will never go up. The proceeds can be used for any purpose. Coverage builds up cash value over time that can be borrowed. We represent specifically four companies that are selected to cover your specific medical  situation . . . American Insurance Group, Family Benefit Life, Great Western Insurance Company, and United Home Life,  No matter what your health situation, one fits your situation.

 INSURANCE PROGRAMS TO FIT YOUR MEDICAL HISTORY

(The rate will be lower for each class as your health is better after each insurance coverage)

Guaranteed Issue Whole Life:  No health questions; no medical exams; and no physical exams. During the first and second years, the death benefit payable equals the refund of premiums plus 10% interest. If death is accidental in the first two policy years, the full death benefit is payable. After two year the full death benefit will be payable.  Anyone qualifies for Guaranteed Issue Whole Life.

 Express Issue Whole Life (Simplifies Issue): The death benefit during first two policies is graded. In year one, the benefit payable if death occurs, is the premium paid plus 12 % interest. In year two, the benefit payable if death occurs, is the premiums paid plus 24% interest. Full death benefit payable in the first two years due to accidental death.  This program is for previously declined applicants that have been declined for significant health issues and overweight clients. There is a one year look back for Cancer, Heart Attack/Surgery, Stroker, and/or Drug Abuse. For face amounts of $10,000 or more, there are no cost built-in riders . . . Identity Theft Waiver of Premium; Hospital Stay Waiver of Premium; and Common Carrier Accidental Death.

Express Issue Deluxe Whole Life (Simplified Issue): Full Benefit immediately. I deal product for insulin-dependent diabetics, individuals receiving disability compensation, or those who have previously been declined by other insurance carriers. In addition, there are optional benefits & riders: Child Rider, Accidental Death Benefit, and a no-cost built-in Terminal Illness Accelerated Benefit rider (for all face amounts).  A two-year look-back for Cancer, Heart/Circulatory Disorder, Stroke, Alzheimer’s, Dementia, Sickle Cell Anemia, Brain Tumor, Kidney Disease, Liver Disease, ALS, Neurological Disease, and alcohol and/or drug use.

Express Issue Premier Whole Life (Simplified Issue): Full Benefit Immediately. Ideal issue pro for clients with minor health issues, such as controlled blood pressure or controlled high cholesterol, or Type II Diabetes (non-insulin dependent.) Optional Benefits & Riders: Child Rider, Accidental Death Rider, and no-cost built-n Terminal Illness Accelerated Benefit Rider (for all face amounts).

Provider Whole Life (Simplified Issue): No-cost built-in Terminal Illness Accelerated Benefit Rider (for all face amounts). For all face amounts, optional benefits & riders: Total and permanent Disability Waiver of Premium) and Child Rider. For face amounts of $25,000 or more, no-cost built-in benefits & riders: Common Carrier Accidental Death Benefit Rider, Life-Threatening Cancer Accelerated Death Benefit Rider, and Charitable Gift Donation Benefit.

Provide Whole Life (Simplified Issue): This is a preferred rate class: It is Available for those who qualify; Non-tobacco clients only; Discounted Premium; and Least expensive rates.

To close, here are a few more things to think about, so when we talk, we can discuss, more thoroughly, how it each one might apply to your situation.

Final Expense FUNDED with Life Insurance for: ___ Burial   ___ Cremation   ___ Other

Documents and Services to PLAN your Estate: ___ Last Will and Testament   ___ Durable Power of Attorney ___ Advance Healthcare Directive ___ Memorial Planning Guide

 

SUMMARY OF BASIC ESTATE PLANNING DOCUMENTS & RELATED

Last Will and Testament  A Willis a document under which a Will writer states his or her intentions regarding the persons or organizations ("Beneficiaries") who will receive the Will writer's property, and the person or organization ("Executor") who will carry out the Will writer's wishes.  This Will is appropriate for a wide variety of individuals. It contains provisions for people who are married or single and will allow you to provide for your children, if any, of any age.  If the Will writer's estate is expected to be larger than the federal applicable exclusion amount ($5,120,000), it may be desirable to use more complete estate planning techniques that are not provided by this document. For such cases, this Will can be used to prepare to work with a lawyer who can assist you with the preparation of a more complex will.  (Note: A separate Will should be created for each person. Even for married couples, a "Joint Will" is not recommended.)

Advance Health Care Directive  Living Will allows you to indicate your wishes concerning the withdrawal or withholding of life-sustaining procedures if you are in a terminal condition with no hope of recovery or are permanently unconscious.  In a Health Care Power of Attorney, you may designate another person (your "Agent") to make health care  decisions for you if you are unable to make such decisions yourself sometime in the future.  In an Advance Directive, you can combine features of a Living Will and a Health Care Power of Attorney. It is the most comprehensive of the three choices and allows you to state your wishes about end-of-life treatment and designate someone to make health care decisions for you.  All health care documents may be affected by state-specific laws. The one we use is written for the State of Tennessee.

Power of Attorney A Power of Attorney is a document under which you as the "Principal," give legal permission to another person or entity (an "Attorney-in-Fact" or "Agent") to act on your behalf. You sign a Power of Attorney document so that your Agent will be able to handle your affairs during a period when you are unavailable or unable to do so. An Agent is not required to be a lawyer.  A Power of Attorney may be either general or specific. A General Power of Attorney gives the Agent broad authority to act for you. A Special Power of Attorney grants the Agent limited authority to act only in specified situations. In addition, you may create a "Durable" Power of Attorney, which means it will remain in effect even if you become incompetent or incapable of handling your affairs. If you do not want the Power of Attorney to remain in effect during these times, then the document can be made "non-durable."

Memorial Plans Memorial Plans help guide loved ones in holding your memorial when you pass. You have things that are uniquely important to you and you may want to include those in your memorial. Maybe you have a special reading or location in mind, perhaps you want to explicitly state if you would like to be buried or cremated. No matter your wishes, drafting your Memorial Plans helps ensure they are carried out: You want to give your loved one’s instructions about your memorial or funeral. You have specific wishes about your service.  This document is sometimes called a Declaration Regarding Final Arrangements. Depending upon your situation, I have provided explanations of each of the following in case you need to consider implementing:  Probate Intestacy                                                                                                                                                                       

Bank Trustee 

Testamentary Trust

Bank Executor 

      PUTTING IT ALL TOGETHER

HAROLD

       May He Rest in Peace

Can you picture your loved ones in the same position of Harold’s surviving spouse, children, and grandchildren?

v He funded his funeral and final arrangements with Life Insurance.  It is exactly what we have been talking about . . . Simplified Issue that everyone can qualify no matter what their health, will qualify.  The cost for his insurance to take care of everything was $46.96 per month.

v The plans in most instances, depending on your age: your answer to some medical history questions; and Traditional Burial or Cremation range from $30 to $70 per month (We can even start lower to at least get you started.  It builds Cash Value and if necessary, one may elect Paid-Up insurance with no further payment necessary.) HAROLD funded his Final Expenses with Life Insurance. With HEELP the following were at NO additional cost.

v During his lifetime, his kids and grandkids were covered for $5,000 of life insurance at No Cost to age 18 (one grandchild died at age 15 died)

v He his insurance policy had an Accelerated Death Benefit (which he began to use one month prior to his death. This is a huge benefit, at no cost that we need to discuss in depth.)

v There was a Memorial Plan in Writing so there was no confusion at death.

v Funeral Planning Trust: This is a trust that is written that can only follow your specific wishes regarding your Final Arrangements.  It can only be use for this purpose.  If there are any funds leftover they will go to your named beneficiary or estate.

v Last Will & Testament – Wishes were his. (In this instance it was at no cost. All depends on the complexity of the family unit(s) and one wishes.

v Advance Healthcare Directive made everything “clear” for his family. No cost.

v Durable Power of Attorney - his spouse could make any financial decisions in the last two months prior to his death. No cost.

Why prepare? Families can make up to 130 decisions in the first 24 hours after death. Usually, these decisions are made under great pressure, sadness, no direction from the deceased, and if there are any assets that can be used, are they best suited and is there a plan for them to be used for this purpose?

How many decisions did Harold’s spouse and his family must make after Harold died?  Very few!  His End-of-Life Plan was funded and planned.  His passing gave everyone time to celebrate his life.  Harold was still their “hero”.