The purpose of buying final expense insurance is to cater for your end of life expenses. At the time of your death, all your outstanding dues, whether legal, medical, housing, and even credit card debts, can be settled with the payout received. Once you acquire insurance for final expenses, make provisions to pay your premiums regularly.
There are generally two categories of final expense policies; these are:
- In simplified issue policies, you have to answer specific medical questions but are not obliged to undergo any medical examination.
- Guaranteed issue policies are open to only those between 40 and 80 years of age, and involve no medical questioning.
When you have final expense insurance, your family is relieved of a heavy financial burden that invariably arises after your passing. Though it costs more than conventional insurance policies, the eligibility criteria are not restrictive.
You can apply for final expense insurance even when you have a severe health condition or are far advanced in age. Insurance for the final expense can be sourced from the following licensing authorities:
- Independent agents selling products of different insurance companies on a commission basis
- Captive agents representing one particular insurance provider and earning a commission on each policy
- Direct-writing agents who operate from the premises of an insurance company and generally earn a fixed salary
Sometimes insurance companies sell directly to the public, bypassing agents. Buy final expense insurance from a reliable and authorized agency or agent who gives you the most valuable advice.
Six ways to help you select the most appropriate policy are listed here:
Estimate Your Final Expenses
The highest cost when you consider your end of life expenses works out to be your funeral outgoings. However, there are other final expenses to be taken into account that add to your overall expenditures.
These include your cost of living, legal fees, medical bills, and credit card outstanding payments. For a realistic estimation, take all these affiliate costs into account.
Approach Reputed Companies
When directly approaching an insurance company, ensure you target only top-rated ones. Even if you go through an agent, make sure he or she is associated with excellent insurance service providers.
Reputed companies conform to industry standards, and you can trust them with your money. These companies have a reputation to uphold hence, operate with the utmost integrity and no hidden agendas. Even the advice you receive from their end is genuine and trustworthy.
Read the Fine Print
Scrutinize the benefits you are entitled to from the policy being offered. For instance, a Level Benefit policy guarantees full death benefit regardless of the cause of death, natural or otherwise.
On the other hand, Modified Benefit policy beneficiaries are entitled to the entire proceeds after a specific timeframe from the date of issue of the policy. Should you pass away during this restricted period, your beneficiary gets only a limited part of the proceeds.
Comprehend Vital Terminologies
Insurance for the final expense comes as either Term Life or Whole Life. You must understand the difference between these two, so you can make an informed decision.
A Term Life policy may expire even before you pass away. Some specify their validity based on the age you attain, say 80 years, while other policies indicate a timeframe. In such cases, the policy may expire 15 or 20 years from their date of issue.
In contrast, Whole Life policies stay valid for your life though some may terminate once you reach 100 years of age. Since the risk factor is more for the insurance provider under this policy, it works out more expensive than taking a Term Life policy.
Delve Into Specifics
Check key aspects revolving around medical examinations and premium levels before making a decision. For your information, final expense insurance does not warrant a medical investigation, though you may be required to answer questions about your health. Also, premium amounts do not rise as you get older.
Request for Quotations
Your unique situation determines the cost factor based on the coverage you choose. Quotations come with no obligation but, help you figure out whether it is within your budget.
Examine the break-up of the estimated costs and ask for clarifications wherever needed. It is essential to clarify all your doubts at the very outset before completing the necessary procedures of buying the actual policy.
Reward yourself with the peace of mind you richly deserve in your twilight years by choosing wisely. Buy your final expense insurance now!