Don't make extra work for yourself when it comes to purchasing a final expense policy. While it's easy to find a quote engine and get pricing for term policies, you can't do the same with permanent insurance. You need an agent and to get the most options you want to work with an independent life insurance agent, preferably one who specializes in senior life insurance.
Why an Independent Agent?
Your independent agent had many high quality carriers that he/she works with. This mean you have options. As you may already know, every company has slightly different underwriting guidelines and words their applications slightly differently. That little difference can be what causes you to get an approval rather than a decline. In other words, your agent should know the best company for you to apply with- that's the carrier that looks most favorably on your medical issues.
You should consider an agent who specializes in life insurance for seniors over 80. They know exactly what your options are and will guide you to the best choices for your personal situation.
A captive agent works with only one company. The problem here is that you have only this one company and if you don't fit their guidelines, you can't get coverage with them. Then you have to start all over.
What Are My Whole Life Policy Choices?
There are several different kinds of policies used as final expense coverage. They are all permanent policies. Here is a list of them and the highlights of how they differ.
- Final Expense Policy- Coverage is from $2,000 to $40,000. If you want more coverage you would have to buy policies from multiple companies. No medical exam is needed for this coverage. Seniors over 80 buying life insurance often opt for this type of coverage because it's easy and quick to purchase. If you can answer "NO" to a number of medical questions you will qualify. (Your medications will be checked in a prescription database to confirm your answers.) The coverage starts on day 1. You are usually approved within a week and the policy in force very quickly.
- Final Expense with Graded Benefit- Coverage is from $2,000 to $20,000. The requirements are the same as #1 the final expense policy. The difference is that you can't answer "NO" to all of the questions. You may qualify for this type of policy. It doesn't go into effect immediately. The death benefit is phased in over 2-3 years (depending on the company). Then it stays at 100% for the life of the policy. This policy is a little more expensive than the final expense policy in #1, however it approves and goes in force just as quickly.
- Guaranteed Issue Insurance- Coverage is from $5,000 to $25,000. This type of insurance has no medical requirements at all. Anyone can purchase this coverage. The application is one page with no medical questions! All applications are approved. There is a 2 year waiting period for the face amount to be payable. If you pass away in the 2 year period from illness your beneficiary will receive all premiums paid plus interest. (If you pass away from an accident your beneficiary will receive the full face amount.) After 2 years your beneficiary will receive the full face amount.
Are There any Other Choices?
Yes, you can get a universal life insurance policy to cover your final expenses. This policy requires a medical exam. A paramedic examiner will come to your home and take your medical history, draw blood, take a urine sample, check your pulse, blood pressure and do and EKG. This type of coverage is fully underwritten. The insurance company will order your medical records to review before making an offer.
The Bottom Line
Working with an independent agent is the best way to purchase final expense life insurance for seniors over 80. They will be able to steer you to the carriers where you can qualify for insurance. Then they will help you find the least expensive policy. Save money, save time, save yourself from a headache- talk to your independent agent today!