We’ll try to answer all questions about a Final Expense Insurance Policy.
First, A final expense insurance policy is, in essence, a small life insurance policy destined to cover funeral expenses and other debts you leave behind. In fact, many of the benefits, provisions, and exclusions found in traditional life insurance policies, are also very common in final expense insurance policies. However, you don’t need a medical exam to qualify, and you can easily get approved by answering a few health questions and completing an application with a final expense agent. You can even do it quickly online or by phone if you do not want to meet in person. Now, let’s explore its benefits, prices, and how much insurance to buy.
The True Cost of a Final Expense Insurance Policy
To determine how much final expense insurance costs, a life insurance agent will use software, or a rate calculator to determine the right quote. Final expense life insurance rates vary by age and the amount of insurance you would like to apply for. For example, let’s say you are a 58-year-old woman applying for a $10,000 final expense insurance policy. You will pay around $32.00 per month. On the other hand, if you wait 10 years, and apply, you will pay $48.00 per month. And at 78 years of age, then get prepared to pay a whopping $89.00 per month!. So, the more you wait, the more you will pay. Additionally, you may not qualify medically, if you already have a chronic medical condition. That would be the ultimate cost of Waiting. Therefore, do not procrastinate and get it done early.
Buy the Right amount of Final Expense Insurance Coverage
Most insurance agents who sell final expense insurance share their experiences with clients while in the field. One of those particular topics that always arises is the amount the final expense insurance policy should cover. The best way to calculate the right amount of insurance is to determine your final wishes and figure out average future inflation to provide an extra cushion for the future. For example. If you would like cremation with a memorial service when you pass, then we need to look at today’s cost. The average national price, for that kind of service, is around $4,750.00. Therefore, you should buy at least $7,000, and $10,000.00 would be ideal to counteract future inflation. On the other hand, if your final wish is to be buried, today’s cost is around $12,000.00, so you should buy at least $15,000 of coverage, and $20,000 would be the ideal amount to beat future price increases. Our recommendation is to calculate final expense quotes online with our free calculator and compare the best final expense insurance companies.
How to Choose the best Final Expense Insurance companies
There are dozens of final Expense Insurance companies in the U.S. today. In fact, A Final expense insurance policy is the most popular plan among people between 45 and 85 years of age. And there are plenty of choices. The first thing to check when choosing a final expense company is their AM best rating. This shows how financially strong the insurance company is. First and foremost, we always recommend choosing an A-Rated carrier. Like a restaurant, Insurance companies get a Letter when they get rated. Mutual of Omaha life insurance, for example, is an A+ rated company, which makes them one of the best choices for final expense insurance. On the other hand, Colonial Penn Life Insurance is a B+ Rated Company, which we don’t recommend unless you have been declined due to bad health. The table below shows some of the the top insurance carriers we recommend.
Final Expense Insurance Policies By Carrier
Which Final Expense Insurance Policy Do I qualify for?
This is going to depend mainly on your medical history. Even though there is no medical checkups, the insurance company will conduct a Rx check(medication database), and MIB (Medical Information bureau) look up, If you apply for a level final expense insurance policy. “Level”, simply indicates the policy will pay immediately, without nay waiting period. However, if your health is below average, or have a chronic condition, like: Diabetes with amputations, you use a scooter or wheelchair, or have had an organ transplant, you may qualify for a graded benefit plan. This type of final expense policy is called “graded”, because it has limited benefits in the first two years. And lastly, you may decide to get a guaranteed whole life insurance policy. These policies also have a 2-year waiting period before they pay the full benefit, but they may be cheaper than the graded options, and they don’t ask any health questions. For an ideal solution, We highly recommend speaking with one of our professional final expense agents, and he/she will help find the ideal policy for your needs and budget.