Final Expense Life Insurance
Life Insurance
Final Expense Life Insurance - What Is It?
Final Expense Life Insurance is a type of Whole Life Insurance that has the intent to cover "final expenses" such as:
- Funeral & Burial Costs
- Credit Debt
- Outstanding Medical Bills
- Car Loan Payoff
- Home Repairs
- Charitable Gift Giving
- & More
The Death Benefit is paid out on a tax-free basis to one or more named beneficiaries. Insurers place maximum coverage limits for this type of life insurance - usually under $60,000.
Note that you will find several insurers that heavily advertise "guaranteed" acceptance whole life insurance - typically, this has the highest comparative cost and may not be the best choice for the average consumer. See below for more info or...
We offer free assistance in shopping for a final expense life insurance plan. We'll help you find a plan that delivers the most value for your dollar. If you are interested in a different type of life insurance coverage (e.g. term or universal life) - CLICK HERE.
Common Characteristics of Final Expense Policies
- Premium Rates Guaranteed Not to Increase
- Cash Value Accumulation, accessible when you need it
- Benefits Never Decrease
- No Medical Exams to Qualify
- Renewable for Life
FINAL EXPENSE INSURANCE ELIGIBILITY
Eligibility criteria varies from carrier to carrier but, generally, if you're between the ages of 45-85 then you may be eligible to enroll into a Final Expense Insurance Policy. Each carrier issues their coverage based on your health profile which is assessed via a questionnaire. You will NOT be required to submit blood work, urine samples, etc. for this type of coverage. Generally speaking, the less health screening that is involved = higher premium levels and easier opportunity to qualify. "Guaranteed" coverage will typically be the highest cost coverage that is available. We highly recommend that you speak with an agent to pre-screen your eligibility and see what rates you may qualify for.
The basic Final Expense Insurance Plan is also referred to as a Level Benefit Plan. If your health profile doesn't meet the requirements for a Level Benefit Plan then you may be offered a Graded Benefit or Modified Benefit Plan. Graded and Modified Benefit Plans pay a reduced coverage amount, during the first couple of policy years. The cost for Graded and Modified Plans are usually greater than for Level Plans. Some of the TV-advertised "guaranteed" whole life policies are either Graded or Modified Benefit Plans.
The basic Final Expense Insurance Plan is also referred to as a Level Benefit Plan. If your health profile doesn't meet the requirements for a Level Benefit Plan then you may be offered a Graded Benefit or Modified Benefit Plan. Graded and Modified Benefit Plans pay a reduced coverage amount, during the first couple of policy years. The cost for Graded and Modified Plans are usually greater than for Level Plans. Some of the TV-advertised "guaranteed" whole life policies are either Graded or Modified Benefit Plans.
Note that rates are set based on the applicant's age, gender, tobacco use, and health status.
MEDICAID ELIGIBILITY AND FUNERAL TRUSTS
Are you eligible for your state's Medicaid program? Setting up a funeral trust may possibly protect your assets from Medicaid "spend down" requirements. Ask us about how we can set this up for you.
Will your family need to use a program like GoFundMe to cover your final expenses? Will the charity of friends and family be needed during a difficult time?
OR
Will you already have everything covered and everyone will know that you thoughtfully took care of your family?
Funeral Costs & Shopping Tips
According to 2010 data, The National Funeral Directors Association says that the average cost of a funeral is $7,755. That price doesn't include things like the cost of the cemetery plot, flowers, headstone, and other costs.
Get all the details on funeral services by requesting your FREE copy of "Shopping for Funeral Services". Published by the Federal Trade Commission, this guidebook explains the FTC Funeral Rule, types of funerals, how to choose a provider, outlines funeral costs, and contains other key terms and information.
ADDITIONAL POLICY FEATURES
Riders may be available as free or fee-based extras on Final Expense Policies.
A Non-Forfeiture Rider can be offered in the form of Reduced Paid-Up Insurance or as Automatic Premium Loans. A Reduced Paid-Up Insurance benefit allows you to settle on a reduced death benefit amount that is fully paid for - no more payments. Automatic Premium Loans allow you to automatically borrow from the policy's cash value to pay for premium payments, this can be helpful if you forget to make consecutive payments outside of the policy's grace period.
An Accelerated Death Benefit can be included or come as an optional policy rider, it is triggered if you are diagnosed with a terminal illness. Basically, while you are still alive and having been diagnosed with a terminal illness, the policy pays out a portion of the face value to you. Some Accelerated Death Benefits are also triggered with a qualifying Nursing Home Stay.
Check with your agent to better differentiate between policies.
A Non-Forfeiture Rider can be offered in the form of Reduced Paid-Up Insurance or as Automatic Premium Loans. A Reduced Paid-Up Insurance benefit allows you to settle on a reduced death benefit amount that is fully paid for - no more payments. Automatic Premium Loans allow you to automatically borrow from the policy's cash value to pay for premium payments, this can be helpful if you forget to make consecutive payments outside of the policy's grace period.
An Accelerated Death Benefit can be included or come as an optional policy rider, it is triggered if you are diagnosed with a terminal illness. Basically, while you are still alive and having been diagnosed with a terminal illness, the policy pays out a portion of the face value to you. Some Accelerated Death Benefits are also triggered with a qualifying Nursing Home Stay.
Check with your agent to better differentiate between policies.
Single Premium Whole Life
Traditional Final Expense policies are paid over one's lifetime but you can also find policies where you pay for a limited period of time (e.g. 10 or 20 years) and some can even be set up with ONE single payment!
Discover how you can immediately increase the size of your estate and either meet all your final obligations or pass on wealth to your named beneficiaries - TAX FREE!
This is a financially efficient method of taking care of your final expenses.
FOR ALL YOUR LIFE INSURANCE NEEDS...
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Final Expense Policies Offered From:
FINAL EXPENSE CONSULTATION REQUEST