When you think about purchasing an insurance policy first thing that pops into your head may be: “do I need a final expense life insurance policy?”
The answer to that question is not easy to answer, but we all know that life is expensive so we worry about the current costs of living rather than think that death can be expensive too. In 2022, the average cost of a funeral in the United States could be over 11 000$ according to the National Funerals Directors Assotiation, and getting a final life expense insurance policy can help you get covered for those costs. Whether you consider buying a policy or not it is important to know what your benefits are so you could make an informed decision.
Reasons Why You Should Consider Buying Final Expense Policy
Final Expense Life Insurance policy is a part of the whole life insurance which means there are no increasing rates over time and your policy doesn’t expire at any age. Besides that there are some main reasons why should you consider getting covered.
Covers the funeral costs
As already stated funeral costs are very expensive, but this policy helps cover all bills or debt you leave after you pass which can give your family peace of mind because they don’t need to worry about how will they cover those costs.
Affordable policies
Expenses for this policy are usually very affordable, for a 10 000$ policy, you will pay 50$ to 100$ monthly premium. Coverage amount expenses are lower so the premiums are automatically lower too. As already said, rates are fixed so your premiums will never increase. Burial policy also builds on a cash value which means that every time you make a payment, a small portion of it goes to this policy. Policies are always tax-free.
No health questions
These policies are often called “guaranteed issue” policies which means there is no medical underwriting and you don’t need to answer any health questionnaire nor you can be denied based on your pre-existing conditions. For example, you won’t be denied for any of your diagnoses such as high blood pressure, diabetes, heart condition, etc. These policies are good if you are, for example, very sick and know that your life will end soon because they have two years waiting period. If death doesn’t occur during that time you won’t get your premiums back.
No exam
You will don’t need to do any medical exam to apply, but maybe you will need to answer some health questions if we talk about a simplified health insurance policy, but often they don’t ask you to answer any healthcare questions at all.
It helps paying medical bills
If you have large medical bills left behind after your death, a final expense insurance policy will help your family to cover those expenses. It can pay your debt in full or help cover for some part of the cost.
There are no waiting periods
Some plans can offer you no waiting periods for natural or death by accident. However, to apply for no waiting period life insurance you would need to answer health questions and get approval but most people do qualify for this type of plan, and your coverage starts immediately. Plans that don’t require health questions always come with a two-year waiting period.
Quick payouts
Most policies have quick payouts. Once the claim is approved insurance companies pay the death benefits within 24 to 48 hours. Also, applications for final expense insurance are quick and can be approved the same day, sometimes within minutes of an hour after application.
You take control
With this policy, you can plan your funeral in the way you would like the most. You would give your family peace of mind because they would know how to make you happy one last time. You can take control of decisions about whether you would like to be buried or cremated, etc.
It can be used as a gift
You can always choose to leave some part of the money for your loved ones or give it to charity because final expense life insurance policy plans aren’t determined for costs of the funeral only, the payout is in cash so beneficiaries can use this money in any way they might like.
If you considering buying a Final Expense insurance policy, agents in Jersey Insurance Solutions can help you with that! Call us or text us today, our mission is to cover our client’s insurance needs!
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
