Although people may purchase life insurance for a variety of different needs, there is one expense that most all families will have to face upon the passing of a spouse or other loved one – and that is the cost of a funeral and final interment.
Many may think that final expenses only consist of the cost of the funeral service itself for an individual. But, these types of expenses can span far beyond that, as they can also include the cost of a burial plot and a headstone (or, cremation and an urn), as well as flowers, transportation, and other related final costs.
In many instances, the overall cost of one’s final expenses can be in the range of $10,000. And, while most people will want to do all that they can when a loved one passes away, the reality is that a family or other loved ones may just simply not have the necessary funds available. There is, however, a solution to this problem – and that is the purchase of final expense insurance coverage.
What Is Final Expense Insurance And How Does It Work?
Final expense insurance, often referred to as Burial Insurance, is a type of life insurance coverage. It is typically purchased by those who are between the ages of 50 and 80 – although there are some insurance companies that will offer policies to people who are older.
In many cases, the benefits that are available via final expense insurance are between $5,000 and $25,000. This can easily help to cover the cost of most funerals and other arrangements that are made. There are many insurance companies today that will offer a higher amount of benefit – possibly even up to $500,000.
If an individual also has other unpaid debts and / or financial obligations, then they may add an additional amount of coverage to a final expense policy. Such costs could include uninsured medical expenses, the cost of hospice care, and / or other related costs that could be incurred and left for loved ones to pay.
Depending on the situation, a final expense insurance policyholder may opt to have the proceeds paid directly to a local funeral home (or to the funeral home where they wish to have their final services hosted). That way, the payments are needed can be taken care of much more quickly. (If there is any additional money left over from the policy after final expenses have been paid, the remainder can then be inherited by a named beneficiary).
As with other types of life insurance coverage, the named beneficiary who receives the funds from a final expense policy will not be required to pay income taxes on the proceeds. Because of that, all of the funds are available for pay paying final expense costs, as well as other needs.
Will You Qualify For Final Expense Insurance – Even With A Health Issue?
If you have applied for a medically underwritten life insurance in the past and you were required to submit a blood and urine sample to the insurance company for approval, you may have been turned down for the insurance that you needed. The good news is that you may still be able to qualify for the protection that you need through a final expense plan.
When compared to a traditional life insurance policy, final expense insurance coverage can typically be much easier to qualify for – even with health issues. Generally, there is no medical exam that is required as a part of the application process. This means that there is no requirement to give a blood and urine sample.
You could also apply for a guarantee issue final expense policy. These policies will guarantee that you get approved, even with certain health issues – provided that the premium is paid for the coverage.
In this case, however, it is important to have a good understanding of how the policy’s benefits will be paid. That is because, in many cases, if the insured dies within the first two years of the policy being in force, the beneficiary may only receive a certain percentage of the stated death benefit. In other cases, the beneficiary may only receive the amount of the premiums that were paid in (possibly with a small amount of additional interest). If, however, the insured dies after being covered for longer than two years, the entire amount of the stated death benefit will be paid out from the policy.
How To Find The Best Premium Quotes On Final Expense Insurance
If you are seeking a final expense insurance policy, it is best to work in conjunction with an independent insurance brokerage that has access to more than just one insurance carrier. That way, you will be able to directly compare coverage, insurance carriers, and premium quotes – even if you have a health condition.
When you are ready to move forward, we can help. We work with many of the top final expense carriers in the marketplace today – and we can assist you with obtaining all of the important details that you need for making an informed purchase decision. If you are ready to begin the process, then just simply fill out the form on this page.
Should you find that you have any additional questions regarding getting final expense insurance with health issues – or, even if you just have a question about life insurance in general – then please feel free to contact us directly. We can be reached via phone, toll-free, by dialing 888-501-0530.
We understand that the purchase of life insurance coverage is a big decision – and you want to ensure that you have the proper type and amount of final expense insurance that will fit your specific needs. Today, there are many options that are available to you – even if you have been turned down for traditional life insurance in the past. So, contact us today – we’re here to help.