Final expense is a whole life insurance coverage to specifically cover the cost associated with one’s end-of-life needs. When one passes away, they don’t want to leave their loved ones with expenses such as funeral arrangements, remaining medical bills, or legal expenses. Final Expense coverage offers peace of mind for your most loved ones. Most people don’t know that funerals arrangements can range between 7,000-12,000 dollars.
If family members do not use the money for final expenses, they still receive the money and can use it how they wish. Death benefits is given to a designated beneficiary. This is tax free money after the insurance carrier receives the death certificate. These policies are small death benefit options that range as low as 1k to 50k depending on the need and what the insured can afford. On average clients purchase 15k policies to cover the cost associated with final expenses. Clients can stack policies up to the max death benefit, but once they hit the max benefit, they can’t get any more with that Carrier. They will also have the option to buy additional policies with other carriers, and as many carriers as they like with no limit. Some of the most recognized affordable carriers are “United of Omaha,” “Royal Neighbors,” “Great Western,” and “Gerber.” Simplified Issue Whole Life Policies are easy & quick life insurance coverage. Death benefits cannot decrease, and premiums cannot increase.
Unlike traditional life policies, you do not have to take a medical exam, there is a series of yes and no health questions which will determine eligibility. The carrier on their end will check medical records & RX reports. Issue ages range between carriers but usually you can purchase these policies as early as 45 years old and up to 85 depending on your health. Simplified issue premiums are based on your health and age. Premiums will be subject to the health and age of the individual but does not mean that coverage will not be offered. Men usually pay more since they have a shorter life expectancy. Also, if you don’t use tobacco, your rates will be lower. Final expense can be the last thoughtful love letter to your loved one.
You may feel like you need to give up because you can’t afford life insurance. Final expense insurance is designed to help this problem. The benefits of final expense insurance are that you will relieve your family members from any of these costs associated with one’s final wishes and give them the opportunity to grieve properly. Final expense can take care of all that for them. It can also be a welcoming choice for people who don’t have insurance due to their health and age. It’s also affordable, due to the lower coverage amount. This type of insurance also builds a cash value over time, so you may borrow from it anytime in your lifetime. The coverage is also a guaranteed issue for those with conditions that may typically not pass underwriting. The policies can’t be canceled, even if your health gets worse. People with serious health issues will only qualify for a policy that does not require medical questions, medical records, or an exam. They have a two to three waiting period before benefits will be paid if the insured dies during the waiting period, the beneficiaries will not receive the policy’s death benefit. They will receive the return of the premiums the policy holder paid, plus interest. It is usually an annual rate of 10%.
Who needs final expense?
EVERYONE! If they could afford it of course. Medicare clients are typically the number one buyers of final expense policies.
