By | Rebecca Siggers | Content Blogger
Although it might be hard for many, only death is the constant thing in every individual’s life. Every individual wants to live longer and spend happy moments with our family and friends. But there is no certainty about our stay on this planet. That is why, just like other insurance plans, finding the appropriate final expense insurance policies is essential.
These companies offer a plethora of services that provide assistance and money to cover the policyholder’s final expenses. Though it might sound quite simple, getting an appropriate policy from such a company is a confusing task.
You would be planning for your funeral expenses, and hence such planning requires appropriate knowledge about these companies and their policies. Therefore, here is a list of the vital things to know about final expense insurance policies in the market for your reference:
1. About Final Expense Insurance Policies
It is also widely known as the final expense life insurance policy and refers to a type of permanent life insurance. Generally, the senior individuals purchase such insurance policies to have an ample amount of resources to cover their final expenses and funeral costs.
These policies are supposed to cover the medical bills, debts, and more such expenses of the senior adults. One of the fundamental reasons people take these policies is that they do not want to burden their children or loved ones. These are generally available with amounts ranging from $2,000 to $40,000, which solely depends on the insurer.
Most of the top-rated insurance companies offering such policies don’t require any types of medical enclosures for approval. Also, the entire process is kept to be quite simple and straightforward.
All you have to do is be within the age range of 50 to 85 years old. But this range can fluctuate depending on the policy norms offered by the corresponding life insurance companies. That is why you must choose the life insurance partner quite cautiously to avoid hassles later.
2. How Do This Insurance Policy Work?
Generally, the insurance companies would never ask for medical documents to approve your application for the final expenses insurance policies. The professional team might ask you a few health questions or even skip them as well. It entirely depends on the insurance company.
However, you can opt for it as the whole life insurance policy and also term policy depending on your coverage need.
- The premiums for these policies might greatly vary depending on your age and health conditions. The older you are, the higher is the premium. However, the premium amount remains fixed as you get older.
- You can directly contact the insurance agent and start with the application process at any time. There are 3 types of agents – independent, captive and direct-writing. Opting for the former is better as they provide you with different policies of different companies. But, the other two will give only one policy option for which they work.
- When the policyholder takes his final breath, the beneficiary receives the amount specified in the plan or as per the norms of the same.
- One can utilize the money for pay the debt of the policyholder after their final departure. The money can also cover the medical bills, and expenses for probate and legal matters if required.
- The entire procedure is kept quite hassle-free to attract potential senior citizens to enroll in these policy programs.
- If death occurs due to an accident, you can get additional money.
- Also, as the insurance policies come with higher risks, hence the premiums might be higher than the regular life insurance policies available in the market.
- Be it whole life or term policy, you can pay the premiums monthly or yearly.
There are many final expense life insurance companies that can help you get the best policy.
3. Types of Final Expense Insurance Policy
Generally, it is of three kinds, namely:
● Simplified Issue Life Insurance:
It is more like a Q and A type where you might not have to pass through any medical exam but has to answer a few health-related questions. In case you reply with affirmative answers, you might be disqualified for the application. As an example, you might be asked whether you are HIV positive or not. So, if you are, then the company might not issue the whole insurance policy to you.
● Policy with Graded Benefits
Opting for it is wise if you do not qualify for the simplified issue policy owing to different health issues. Here, you will get a particular amount out of the total death benefit within three years of commencing the policy. The remaining amount will be transferred to you after the term completes.
● Guaranteed Issue Life Insurance:
Here, you do not have to worry about replying to any such questions, as mentioned in the former one. One of the most significant advantages of applying to this policy is that you will never be turned down.
But every policy has its pros and cons, and these as well come with graded health paybacks. In case the policyholder passes within a year or so after buying the insurance policy, then the family members get only a tiny part of the total coverage money. But the terms and conditions differ for the deaths caused by accidents.
4. Cost of Procuring Final Expense Policy
If you have decided to get whole life insurance for final expenses, you need to be ready with the premium details. These insurance policies are solely made for the senior citizens of the country. That is why these come with high-risks as well. Due to such reasons, the premiums involved in these policies are slightly on the costlier side.
These are available for higher rates in the market. As the time frame remains a little shorter than the regular policies, you are likely to pay slightly more depending on age, gender, and answers to health-related questions. From $15 to around $80 per month, you might have to pay approximately $50 on an average for such insurance policies.
No matter how lucrative the deal sounds to you, one must check the policy’s details properly. In case you want to invest your resources in a single-premium insurance policy, you might get instant coverage.
But if you choose to pay the premium over the years, you get yourself a better deal for your final expenses. Also, the graded death benefit insurance policies are pretty profitable as compared to the ones available for a single payment.
5. Approval Duration of the Final Expense Insurance Policy
In case of approval, you do not have to wait much for these insurance policies. As they do not require any medical checkup, hence these are almost instantly approved by the insurance companies. You can apply to these via phone or the online platform as well. Also, the companies are always ready to offer you free quotes for their whole life insurance policies.
6. Availability of Payment Options
While selecting the insurance policy for your future, you must check out the availability of different payment modes. Generally, the payment platforms tend to vary depending on the insurance companies.
However, you can directly link your bank account for monthly premium payments to avoid missing them out by any chance. People also use their social security cards and credit cards to make payments. However, do check the availability of an appropriate encrypted payment platform before you start paying the premiums every month.
7. Benefits of Final Expense Insurance Policy
If you aren’t yet sure about procuring such whole life insurance plan for your future, then here are some essential benefits of it:
● Makes It Easier For The Family
One of the primary reasons why these policies are popular is that they offer people to take care of their beloved ones even after they are gone. Your family gets appropriate resources to cover the funeral expenses and hence can grieve a little better with such conditions. Also, the coverage money can help them pay the debts and other costs, which can lower the tensions and stress.
● No Medical History Hassles
Another reason why these whole life insurance policies are trending in the market is that they do not require your medical history. No need to worry about getting an appropriate coverage plan for your family. These are easy to acquire and offer lucrative coverage benefits.
● Financial Security
When you already know that your family would be taken care of even when you aren’t around, it gives you relief. That is the aim of these insurance plans available in the market.
These plans offer financial security not only to the policyholder but to their beloved ones as well. That is why the experts think that it is profitable to invest in these plans for your future.
Apart from these reasons, such insurance policies provide you with peace of mind. When you know that you already have made appropriate plans for your future and beyond, you no longer fear your final departure.
The Bottom Line
Life is unpredictable, and we all tend to plan for our future. So, when one prepares for such final expenses, they tend to focus on their current lives and enjoy every bit of their senior life with their family and friends.
Have you been thinking about getting whole life insurance for you lately? Have you got all the intricate details of these policies available in the market? Do you wish to get more knowledge about them? Or have you recently applied for one? Share your thoughts and views regarding such final expense insurance policies here with the readers!