Final Expense Insurance: Why You Need It

By Dennis Foreman

Those of us near retirement age have seen thousands of ads for insurance products - term life policies, whole life, universal life, and on and on in a confusing parade. As young adults some of us bought one or more types of policies and have them still. Many did not, or through financial and health issues, lost our coverage.

Final Expense Insurance Is For The Mature And The Caring Final Expense Insurance is for those of us mature enough to plan for our own passing, and who care about the well-being of those we leave behind. More flexible than burial policies which are limited just to burial costs, final expense insurance gives those left behind freedom to deal with expenses, medical bills, other debts, or legal fees that may be due.

"Average" Funerals Hard To Figure It is difficult to obtain reliable figures for current funeral services. Government numbers haven't been reported for several years, and practices vary widely around America. Just relying on an "average funeral price" of $8 - $10,000 is a poor way to plan. Costs in rural areas can be notably less while large city burials could easily cost more than double!

A Better Way To Discover Funeral Costs The best practice is to question your friends, minister or insurance professionals in your area about actual costs. Be certain that you discuss the level of service appropriate for you and your circumstances. It isn't fun to think about our passing yet you must plan now, or your loved ones will be forced to deal with these difficult issues at an especially difficult time.

Easy Issue Insurance By Design Most of us in reasonable health between 50 and 80 can obtain final expense insurance. Insurance companies make this possible by limiting maximum amount of coverage to $50,000, and by separating the policy types into two classes - guaranteed issue and simplified issue.

Medical Exam Not Required No one between 50 and 80 years of age is turned down for guaranteed issue policies. Everyone will qualify and no medical exam will be required when you apply for this type of policy. Most guaranteed issue policies have a waiting period of 2 - 3 years before death benefits can be paid out.

Some Drawbacks With Guaranteed Issue Policies Rates are higher for guaranteed issue policies because the insuror doesn't know the health risks of the applicant. Another negative is the 2- 3 year waiting period required. Should the insured person pass away during the waiting period death benefits will not be payable. The premiums already paid in will then be refunded and interest on them is sometimes paid as well. Simply put, if you don't want to answer any health questions insurers are taking a bigger risk - they protect themselves will higher rates and a delay of benefits.

Reasonable Health Yields Lower Rates Reasonably healthy older people should try simplified issue final expense plans. They do ask some basic health questions but if you qualify premiums are less than guaranteed issue plans and the benefits are available immediately - there's no waiting period. Choose a simplified issue final expense insurance policy if you possibly can. You'll save money, be covered immediately and give your loved ones freedom and flexibility during a difficult time.

About the Author:

You can leave a response, or trackback from your own site.
Powered by Blogger