Permanent Life Insurance Protection

Situation:
Linda is a 54–year old single mother of two daughters. Both of her daughters are grown, married and completely independent. At this stage of Linda’s life, she does not need life insurance to protect a child or spouse. She is however, concerned about the costs that will be associated with her death. Linda does not want to be a burden to either of her daughters and is therefore looking for ways of creating liquid assets that can be used toward her final expenses and funeral expenses.

Analysis:
In this situation Linda is looking for a relatively small amount of coverage that will continue for her lifetime. This is a case where Permanent Life insurance would work best since she will need it for her entire lifetime. One specific type of coverage that may be attractive for her situation is a Universal Life insurance policy with a no–lapse guarantee. This is the most economical way for her to maintain a guaranteed level premium and death benefit for her lifetime.

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