These are just some of the life insurance questions that one might ask when we hear the words final expense life insurance. No one likes to be misquoted, especially when it is about their final wishes. Writing something down, even as final as the last will testament, obviously doesn’t ensure it will be remembered or interpreted correctly.
This is the reason why many people choose final expense life insurance or any other funeral insurance. While a will might not be found until after funeral services have occurred, final expense insurance makes sure the funds are allocated and available for the family when required.
You may be looking for the final expense whole life insurance to cover the expenses when you are at your death. In reality, it is quite straightforward to get a final expense policy, but you might have some questions before you get ready to buy a final expense insurance policy.
Top 12 questions on final expense life insurance
- What is the final expense life insurance policy?
Final expense life insurance is meant to cover the funeral and burial cost for an individual who dies. Such type of life insurance is meant to leave any extra money for the people that the deceased leaves behind, as it is meant to leave them with no burden of expenses that are associated with death.
Final expense life insurance is also called burial insurance and is obviously great if you are looking to pay for expenses and don’t want to be a financial burden to the next generation. Some of the common features of the final expense life insurance are:
- The premiums are level for life.
- The death benefit can be paid to the beneficiaries tax-free.
- The burial insurance policies normally have a level death benefit.
- You don’t require medicals for approval.
- The final expense life insurance process is simple and quick.
- What final expenses should one plan for?
Everybody’s situation is somewhat different, but in general, if you happen to make the previous list of costs, you will have a good idea of how much coverage you should be getting. There are a few things you must consider when purchasing a final expense policy.
Even though the final expense basically focuses on covering the funeral costs, one is able to use the death benefit for anything from medical bills to credit card debt, mortgage, payments, etc. How this death benefit is spent is ultimately up to the beneficiary of the life insurance policy. Here is a list of things to plan for:
- Burial expenses.
- Medical bills.
- Unpaid bills and other debts.
- Loss of income for the family members.
- Educational expenses.
- Passing on an inheritance.
- How much final expense coverage do I require?
As final expense is a form of insurance that is specifically intended to cover the end-of-life costs, there are many seniors and other people over the age of 50 that turn to final expense insurance for its level benefit and premium, which is similar to the whole life insurance.
The final expense policy benefits range between $2000 and $40,000 and provide the policyholders with an affordable means of covering the final expenses. It is a great solution to pay for the funeral and last expenses if you don’t have any life insurance, or you feel your current insurance policy is not adequate.
Just because you know that you require insurance obviously doesn’t answer the question of how much you require. Determining the proper final expense coverage will certainly help you to find a policy in order to suit your needs and your budget.
- Is there a waiting period for my final expense insurance policy?
In most of the cases, the final expense insurance policies can immediately provide the full death benefits that start from the first day of insurance coverage. All you require to do is to have the application approved and then pay the first premium in order to secure the coverage, and the paperwork must display the effective policy date.
However, you should remember that if your insurance policy has a graded benefit, then you will only have access to the partial benefits at the start of your final expense policy effective date. The full access to all the benefits will be available after a set period of time.
- What is the cost of the final expense insurance policy?
As there is no medical exam involved, and the reason is that the final expense insurance is actually reserved for the older or less healthy shoppers, therefore, the cost of final expense insurance is the same as a term policy, for ten times less insurance coverage.
One must always have a term policy as the first option when it comes to life insurance, as it is the most-effective way to cover the burial expenses or any other related expenses that your loved ones may have.
If you absolutely need the financial protection and would be able to get covered by answering the health-related questions and avoiding a medical exam, then the final expense plan would be the one which is worth looking into. You must always speak to a licensed expert who can help you to compare the policies before committing to any pricey final expense life insurance policy.
- When should one purchase final expense life insurance?
If you are relatively healthy, then applying for traditional life insurance is a much better idea. With the traditional term life insurance, you will be able to get more coverage for your premiums. On the other hand, with the final expense life insurance, you are to pay higher costs in order to get guaranteed approval and not have your health come into play.
We all know that sometimes life doesn’t go as planned, and you don’t want your family to deal with the devastation, but you have waited too long, and your health is on the declining side. If traditional life insurance is not an option, then the final expense life insurance will be able to save your family from any financial struggle.
- Will the final expense premiums change?
As far as final expense insurance is concerned, the premiums are to stay level regardless of your age, increasing or any changes to your health. Therefore, whatever happens, you already know that you will keep all of your premiums the same for the rest of your life.
Though, it will be difficult to say what the average premium might be, as your insurance rate depends on the health, age, sex, and how much insurance coverage you are taking out. So if you are older, you have to pay a little higher premium, so will be the case with any serious health condition or tobacco use.
- How long will my final expense policy last?
The final expense insurance policy is designed to last until the passing of the insured. This policy will certainly not be canceled and is guaranteed to pay a death benefit as long as you don’t stop paying the premiums.
The death benefit for the final expense insurance policy is graded, so if you happen to die during the first few years of your insurance coverage due to any previously known condition like heart disease, etc. your beneficiaries will not be able to receive the full amount of the policy. However, they will normally get back what you have paid in premiums, plus the interest. If you die because of accidents, like falling down a flight of stairs, then most of the policies are bound to pay the full benefit immediately.
- Do I have to qualify for the final expense policy?
It basically depends on you, as you have many available choices. You can be fully underwritten, which is sometimes referred to as medically underwritten for a policy. A fully underwritten policy means that you can get better pricing if you are in good health, but you will have to go through a medical exam.
Keep in mind that the difference in the small policies is not that great, as most of the people tend to purchase the final expense policy when they get older. This means that your health might probably be standard or not that perfect.
There are various simplified issue policies that only require a questionnaire. The insurance company will still look at your medical history, but there is no medical exam. You also have the option to choose a guaranteed issue policy with no health underwriting. This is the best possible option if your health is not that good and you don’t want a medical exam.
- How to apply for a policy?
Every life insurance policy requires you to fill out an application. Depending on the life insurance company, the application could be 1-2 pages or 5-10 pages in length. The longer applications will ask quite a few questions, like the applicant’s height and weight, blood type, family history, and the level of activity. These companies normally require a medical exam with blood and urine analysis.
There are some companies that have a single page application and require no medical exam. This coverage is based on the applicant’s answers to health-related questions and not medical tests.
When applying for insurance coverage, you can often call or fill out an online form in order to receive a free no-obligation quote. Your quote will be provided to you directly from the insurance company or from one of the company’s licensed representatives. In some cases, the insurance coverage can be sold over the phone, but most of the policies require some type of face-to-face interaction.
- What is the difference between whole life insurance and final expense insurance?
One needs to understand that final expense is a type of whole life insurance, so there is no difference between the final expense insurance policy and whole life.
The whole life insurance provides lifelong coverage and includes an investment component, which is known as the policy’s cash value. This cash value grows slowly in a tax-deferred account, which means you won’t need to pay taxes on its gains while they are accumulating.
The whole life insurance benefits can go up to millions of dollars, and its main focus on cash value accumulation. The final expense whole life insurance is a type of insurance that tends to be focused more on getting you an affordable and guaranteed death benefit.
- Should I buy a final expense policy online?
The insurance rates are actually changing constantly to account for new advancements in technology and healthcare. Each final expense company sets its own rates that are based on underwriting criteria and actuarial data. The most affordable policy with one company might not be the same as others.
The best way to figure this out is to speak with a licensed agent who is able to provide you with a free quote that can meet your specific requirements. There are many final expense plans that exist, but it depends on which one is the best, especially when it comes to protecting your family during the funeral process.
Buying online is a new normal now, as, in the past, you would only buy a life insurance policy face to face. In the past, it was much harder to find the information online, but with so many insurance agencies, you can be able to find the top final expense quotes. Buying whole life insurance online also gives the buyer a lot of power to compare quotes and think about what can be best for you.
Final expense insurance is no doubt a must-buy item for you and your family, as you never want to leave your family members hanging after you are gone. You’d definitely want them to come together for a time of grieving, healing, and love. You obviously don’t want to complicate that with a lot of financial infighting and negotiating.
You can already see that the final expense whole life insurance has a lot of benefits, and it is a straightforward product that will do what it promises to cover your final expenses guaranteed. Therefore, it will never ruin your funeral and mar your memorialization.
Hi, I’m Mitch Winstead with Advanced Mutual Group. I have been selling burial insurance for over 20 years. Our website is http://www.advancedmutualgroup.com Our Facebook page is http://www.facebook.com/advancedmutualgroup.com
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