Affordable Burial Insurance Plans
Have you ever wished that you had a small insurance policy that was set aside just to cover your burial expenses and maybe a few small debts so that your loved ones wouldn’t have to worry about that?
Well, there is a type of life insurance that is designed for exactly that purpose. Final expense is that type of life insurance. These policies are generally limited to smaller face amounts such as $5,000 to $20,000.
Final expense plans are typically simplified issue, although there may also be guarantee issue plans available.
Simplified issue basically means they have simplified underwriting.
This usually means there are less health questions on the application than for other types of life insurance and a physical or blood draw is usually not required.
Final expense is attractive to seniors but also to anyone who wants affordable coverage for those expenses that won’t break the bank when it comes to monthly premiums.
Life insurance premiums are initially based upon your age and your zip code. So the younger you are when you sign up for a plan the cheaper the premium will be.
Final expense plans are whole life plans. The premium is set based upon your age and other considerations at the time of application.
The price is fixed and does not increase as you get older. Once issued these plans stay in force regardless of your health situation as long as you continue to pay your premium.
Guarantee issue plans have no health questions. Because of that most pay out only the premium received plus a small percentage during the first 2 to 3 years in the event of death during that time. After the 2 to 3 years the plans pay out the face amount of the policy just like any other final expense plan.
Even though final expense plans are simplified issue, some will be more favorable to people with certain health conditions. We can help you find the best plan for your needs if you have one of those common health issues.
Most companies will conduct a short phone interview with you, some even at the time of application. They will compare your answers on the application to your medical and prescription records and ask any questions they need to clarify things on their end.
Smokers will always pay more than non-smokers for life insurance. So the younger you are when you apply and the healthier you are when you apply, the cheaper the rates will be for the same coverage.
That said, don’t let smoking or poor health necessarily keep you from applying for final expense life insurance.
Although the rates may be higher or you may have to go with a guarantee issue plan you will still have coverage and having some coverage is usually better than having no coverage when that time comes.
Final expense life insurance is not the same as ‘pre-need’ insurance plans. Pre-need insurance policies are basically pre-purchasing a burial package from a funeral home or in some cases a chain of funeral homes.
With final expense plans the face value of the policy is paid to your beneficiary or estate by the insurance company at the time of loss.
With pre-need insurance your burial expenses will be taken care of by the funeral home or provider according to the terms of the contract you agreed to when you bought the plan.
Final expense plans are desirable to many because it doesn’t matter where they live when their loss finally happens. The monies paid out by their plan can be used anywhere regardless of where they live or how they choose to be taken care of in their will.
As always, please reach out to us with questions you have in this area, that is our job and we are happy to provide those answers to you.