Final expense insurance, also known as burial insurance, end-of-life insurance, and funeral insurance, is a popular choice among seniors looking to cover funeral costs so their loved ones won’t have to. If you’re considering final expense insurance, there are some things you need to know before applying.
Final Expense Lasts Forever
Unlike term life insurance, final expense insurance never expires so you won’t have to worry about outliving your coverage. This is why final expense is considered to be a type of whole life insurance.
Final Expense Is Inclusive
Final expense has higher age limits than most. Most companies allow applicants between ages 50 and 85. However, the older you are when you apply, the higher your rates will be.
No Medical Exams, But There May Be Questions
Final expense is easy to qualify for. You won’t have to schedule an appointment at a doctor’s office like you would when applying for a different type of life insurance. At most, you will only have a brief interview about your medical history and the medications you’ve taken in the past. Whether you answer questions depends on the type of final expense policy you get.
Simplified vs. Guaranteed Issue
Final expense can come as simplified issue or guaranteed issue. There are notable differences between the two that make them the right choice for some, but not others.
Simplified issue:
- Requires answering questions as part of the application process
- Younger individuals without major health issues will easily be accepted and pay lower rates
- Immediate coverage, where the full death benefit will be paid after the policyholder makes the first payment
- Ideal for younger, healthier applicants
Guaranteed issue:
- No medical underwriting
- Waiting period of 2-3 years before the policy will release the death benefit
- If the policyholder dies during the waiting period, only the premiums will be refunded
- Ideal for older individuals with health issues
The Death Benefit Can Be Used For Anything
Death benefits typically don’t exceed $50,000, but that’s more than enough to cover funeral costs, which as of now, have an average cost of $9,420 according to the National Funeral Directors Association (NFDA).
Your beneficiaries won’t owe any taxes on the death benefit. They can spend the entirety on personal debts or leisure purchases.
Expedient Application And Claims Processes
Companies utilize electronic analysis for applications and approve them in as little as 10 to 15 minutes. Applications usually go through an agency, but some companies allow applications to be completed via online or through the mail.
Upon the policyholder’s death, beneficiaries must submit a death certificate along with signed claim forms. After this, beneficiaries will receive the full death benefit within 48 hours.
Get Your Final Expense Policy Today
Senior Life Services brings you policies that will always be yours, and help alleviate your loved ones’ financial burdens. We will help you find the best policy for you – both in coverage needs and budget. Don’t delay. Call us today at (800) 548-3249.
