Final Expense Life Insurance
Final expense coverage is also known as burial coverage. Generally this insurance is purchased to cover funeral expenses and remaining bills, medical and other.
- As you can see from the infographic the average funeral costs is over $7,000.
- Some folks want to have the coverage so that their family won't have to come up with the money.
- Others know they are the ones who will have to pay and they buy the policy for a parent, grandparent, or other relative.
- Whatever the reason, final expense policies will give you peace of mind.
There are several kinds of insurance that can be used as life insurance for final expenses. They are all permanent life insurance- either universal life or whole life. If you're buying a policy to be used for final expenses you want it to last for your entire lifetime.
Universal Life Insurance Policies
As you can see from the infographic, universal life final expense insurance is a better buy than whole life. However, it also has more requirements. First is that the policy face amount minimum is $ 25,000. If you want less coverage, then a universal policy is not an option for you.
To qualify you must go through full underwriting:
- You will need a paramedical exam
- You will give blood and urine.
- You will have to qualify medically.
Whole Life Insurance Policies
- Have face amounts of $2,000 up to 40,000.
- Although they cost more than universal policies, they are much easier to get. The underwriting criteria is much easier.
- Final expense whole life policies have simplified underwriting. That means you have to be able to answer a number of health questions, saying that you do not have those medical issues.
- There is no health exam required.
- You will have an interview with the insurance company regarding the health questions.
These policies are the most common final expense policies. As each company has slightly different questions, you may qualify for one, but not another.
Guaranteed Issue Insurance Policies
If you can't qualify for either of the above policies you can purchase a guaranteed issue policy. There are no medical requirements and all applicants are approved. You would only consider this type of policy if you can't qualify for either of the others.
There is a waiting period before the policy would pay the death benefit in full. Before that time the premiums would be returned to the beneficiary.
Which Is Best?
The answer is easy. The best idea is to talk to an independent agent. Once you decide how much insurance is right for you then you can begin to look at the policies and see which will work for you. Remember, if you want only $10,000 but can qualify medically, you may be able to get $25,000 for the same amount of money (see the infographic!).
Use your agent's experience, knowledge and expertise to get the best life insurance for final expenses policy for you!