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Making sure that your loved ones are not left struggling financially in case of the unexpected is one of the very best gifts that you can give. Even if you have no outstanding debts, the cost of a funeral and other final expenses can, on average, run in the range of $7,000 to $10,000.
This is an amount that many families just simply do not have readily available – but the amount can add up, especially when you factor in the price of a memorial service, a burial plot, and headstone, flowers, transportation, and the printing of funeral notices. But, if you have a final expense life insurance policy, these costs can quickly and easily be taken care of.
What Is Final Expense Life Insurance Coverage?
Final expense life insurance is a type of life insurance coverage that is designed specifically for paying the cost of one’s funeral and other final expenses. These policies may also pay for various end-of-life medical and / or hospice costs.
Today, many of the top life insurance carriers offer final expense life insurance plans – and the cost of this coverage may be much more affordable than you may think – even if you have an adverse type of health issue and have been turned down for traditional life insurance protection in the past.
What Makes Final Expense Insurance Different From Other Types Of Life Insurance?
While final expense is a type of life insurance, there are several factors that can set this particular type of coverage apart from other forms of life insurance policies. For example, one area is in the amount of insurance protection that is purchased.
In many cases, people who are buying regular life insurance coverage will opt for as much death benefit as they can get – especially if they have others who are depending upon their income for long-term, ongoing, living expenses. But with final expense life insurance, most policies will provide a benefit in the range of $5,000 to $25,000 – and, while this benefit may not seem like a lot, in many cases, it is more than enough to cover the insured’s funeral and other final expenses.
Will You Qualify For A Final Expense Insurance Policy?
Many final expense life insurance policies will not require the applicant for coverage to take a medical exam as a part of the underwriting process – and in some cases, you may not even have any health questions to answer on the policy application.
If, for instance, a policy is a no medical exam option, you may need to answer some health-related questions on the application that will be reviewed by the insurance company’s underwriters.
If a policy is a guarantee issue plan, then you will be approved for the coverage – regardless of your health condition and / or history – as long as the premium is paid. This, too, can often set final expense insurance apart from the traditional, medically underwritten life insurance policies.
When purchasing a traditional life insurance policy, it is typically required that you undergo a medical examination. This exam usually consists of meeting with a paramedical professional who will obtain health information from you and will also get from you a blood and a urine sample. These samples are tested for various illnesses and conditions that could make you more of a risk to the life insurance company.
Because there is typically no exam required with final expense life insurance, there is also often no lengthy underwriting process involved – which means that the policy can often be approved an issued much more quickly than a traditional policy. In some cases, final expense life insurance can be approved within just a few days of application – or even on the very same day. Because of this, final expense policyholders will know that their future financial needs will be covered.
How Much Does Final Expense Life Insurance Cost?
There are several different factors that can come into play when determining the cost of a final expense insurance policy. These include the age and gender of the applicant, as well as the amount of protection that is being purchased.
Because the face amount of coverage on a final expense insurance policy is usually in the range of $5,000 to $25,000, these policies are often low cost in terms of premium outlay. In addition, many final expense life insurance policies are a permanent form of coverage known as whole life insurance.
Unlike a term life insurance policy, which will only remain in force for a certain number of years, whole life insurance coverage is designed to cover an insured for the remainder of his or her lifetime – provided that the premium is paid.
The amount of premium on whole life insurance protection is typically locked in for the life of the policy and guaranteed not to increase, even as the insured ages and regardless of if he or she contracts an adverse health condition in the future.
It is important when reviewing possible final expense coverage options, to ensure that you have a thorough understanding of what the policy will and will not cover. It is also wise to review the insurance company through which you are obtaining the coverage.
This is because you want to be sure that the underlying insurer is strong and stable from a financial standpoint and that it has a good, positive reputation for paying out its policyholder claims.
One particular area that you should review is the insurance company’s ratings that are provided by A.M. Best, Standard & Poor’s, Moody’s, and / or Fitch. These are typically provided as a letter from A++ to F, similar to a school report card. Another way to check an insurance company’s reputation is to seek out information about the carrier via the Better Business Bureau (BBB). This entity will also provide grades on a scale of A+ to F, and will also include information regarding customer complaints about the company, as well as what the complaints were regarding.
In addition, it is key to compare the premiums on several different final expense life insurance policies prior to making a purchase. This is because, just like with most other products and services that you purchase, the price that is charged can differ from one company to another.
Who Is A Good Candidate For Final Expense Insurance?
Although final expenses can be needed at any age if the unexpected should occur, final expense life insurance policies are typically purchased by those who are between age 50 and 85 – and there are some insurance carriers that offer final expense insurance coverage to applicants who are older.
Some others who may be good candidates for a final expense insurance policy include individuals who may have a fear of needles. Due to the fact that many final expense life insurance policies do not require a medical examination, there is no need to meet with a paramedical professional and provide a blood sample. Therefore, it can still be possible to obtain life insurance coverage, but without having to worry about dealing with the needle that is required to obtain a blood draw.
Certainly, because final expense life insurance can be easier to qualify for in terms of medical parameters, this type of coverage can also be a good fit for those who may have an adverse health condition and would not otherwise qualify for a traditional policy.
Where To Find The Best Premium Rates On Final Expense Coverage
Having a final expense insurance policy can be well worth it – especially as the coverage from this type of policy can provide your loved ones with peace of mind – often for a very affordable premium price.
When searching for the best premium rates on final expense life insurance it is wise to work in conjunction with an independent life insurance agency or brokerage that has access to many different insurance carriers. Doing so will allow you to directly compare, in an unbiased manner, policies, benefits, and premium quotes – and from there, you can decide which one will be the best for you and your specific needs.
If you are in the market for a final expense policy, we can help. We work with many of the top life insurers in the marketplace today, and we can provide you with the details that you need quickly, easily, and conveniently – all from your computer – and without the need to meet in person with a life insurance agent. When you are ready to move forward, just simply fill out the quote form on this page.
Should you still have any additional questions regarding final expense insurance – or even if you have a question about life insurance in general – please feel free to contact us directly. Our experts can be reached via phone, toll-free, by dialing 888-389-8676.
We understand that it can be difficult to decide whether or not final expense life insurance is worth it. But, if you have loved ones who may need to dip into savings or other personal assets to pay a large final expense bill, then this coverage can be extremely beneficial. So, contact us today – we’re here to help.