Only 59 percent possess some form of life insurance in the United States. While there are no definite reasons for it, people usually do not buy life insurance because of price, demands, and distrust of insurance companies.
However, not getting insurance, especially final expense insurance services, might cost you in the long run. The risk may include massive healthcare expenses, which could lead to mounting debt and strain in household finances.
Opting for final expense insurance services will help keep medical costs and other end-of-life expenses like cremation, burial, and caskets to a minimum. Generally, final expense insurance is permanent life insurance, which does not expire and stays in force for as long as the premiums get compensated.
In other words, the policy will be in effect until the individual passes away, and his selected beneficiaries will receive the death benefit. Dissimilar to traditional life insurance, the final expense will only require individuals to answer a few questions to help set the cost of their policies.
While the final expense insurance is meant to be utilized as burial insurance for funeral expenses, the beneficiary can use the death benefit for whatever he wishes. Some recipients choose to use it on a mortgage, everyday living, and college.
The average cost of a final expense insurance policy is estimated at USD 50 per month, and the most outstanding face amount purchased is USD 10,000. Nonetheless, the specific premium you will receive differs depending on your gender, health, face amount, and age.
What are the Types of Final Expense Insurance?
Final expense insurance policies are classified into two types, particularly guaranteed issue, and simplified issue life insurances.
- Guaranteed Issue Life Insurance
Guaranteed life insurance is whole life insurance designed for individuals who cannot qualify for a traditional life insurance policy. It does not involve any health questions or medical examinations and is considered as the most accommodating form of life insurance.
Usually, financial companies like Funeral Wise will only require the applicant to submit a basic application form and fill up details like name, address, age, and beneficiaries. The coverage amount for a guaranteed issue life insurance has a maximum limit of about USD 25,000.
- Simplified Issue Life Insurance
Simplified issue life insurance is for individuals who may not qualify for underwritten life insurance policies but are referred only as moderate risk. No medical exams are involved, but you will be required to answer a comprehensive medical questionnaire.
Individuals who can get approval will be able to receive around USD 50,000 of coverage, which will be paid to beneficiaries to settle any debts. They also do not have a cash value component, which makes it simpler than buying regular life insurance.
What Final Expense Insurance Service Suits Me Best?
Before deciding on final expense insurance, make sure to consider your preferences when it comes to coverage types, terms, and the coverage amount. While whole life policies do not expire, some may only be acquired to a certain age.
So, it is essential to do your research and set your policy needs to trim down your choices. Ensure that you are picking the best value for your budget.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.