Life insurance is something that everyone should consider purchasing, especially because not having it, can mean potentially very challenging times for your loved ones when you are not around any longer. You might be looking for a final expense whole life insurance to cover your expenses as you grow older. In reality, it is very straightforward to get a final expense policy, but you might have some questions before you’re ready to purchase. Here are some of the most common questions many ask about final expense life insurance.
What exactly is Final Expense Life Insurance?
Final expense life insurance is a certain type of whole life insurance. It provides a death benefit to your beneficiaries that help out with costs associated with burial and other long-lasting expenses after death. These policies are otherwise known as burial insurance. Some of the most common features of final expense life insurance include:
- Level premiums forever
- No medicals needed for approval
- Death benefits of $2,000 to $15,000
- Policies that typically have a level of death benefit
- Simple and quick process
It’s excellent insurance if you’re looking to pay for expenses, and not leave a financial burden for the next generation.
Which Final Expenses Should I Plan For?
There are a handful of things you should consider when purchasing a final expense life insurance policy. These include:
- Burial costs
- Medical bills
- Bills left unpaid and other debts
- Loss of income for your family
- Educational expenses
Everyone’s situation is a bit different, but in general, if you compile the previous lists of costs, you’ll get a very good idea of how much coverage you should receive.
What Will a Final Expense Life Insurance Policy Cost Me?
The cost of your final expense policy depends on many different factors. These include your health, age, and the company that you choose to cover you – much like choosing a Medicare plan. The best way to find out for sure is to get a quote. Final Expense policies can be very reasonably priced policies. The average cost for a $10,000 final expense policy can be close to around $80 a month.
When Should I Buy Final Expense Life Insurance?
You should buy a final expense life insurance plan as soon as you can. The earlier the better, as the costs will continue to rise the older you get. Normally, final expense policies are for people between the ages of 50 and 85. Some companies will even offer coverage to customers who are 85 or older. Nobody is left out from the opportunity to apply for a final expense life insurance policy.
Are there different types of Final Expense policies?
There are two different types of policies offered. The first type, is a day one benefit. These types of policies are underwritten, and are offered to a person that does not have a serious underlying health condition. These types of policies benefits are paid day one, meaning any time the individual passes the benefits are paid.
The second type of policy is called a guarantee issued policy, and is typically purchased by an individual that does not medically qualify for the underwritten type ofcoverage. The guaranteed issue policy is typically offered and works like a regular underwritten policy, but might have a time period where the policies benefit is staggered by specific time periods, and will go up in value to the full potential benefit amount, after the policy holder has lived through the required period. For example, say the policy purchased is a $10,000 benefit amount. The policy might require a person to live a full 2 years before the full benefit amount of $10,000 can be paid, but may offer a portion of the benefit amount if the person passes before the two year time period occurs.
If you have any questions regarding this type of policy, feel free to give Healthcare American a call!
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