Final Expense
Final Expense
Preparing for the future as much as you can is a great way for you to secure coverage and provide some sort of financial stability for your loved ones, especially after your passing. This is where a life insurance policy, such as final expense, can become very beneficial.
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What Is Final Expense?
Final expense insurance is a type of whole life insurance, meaning it is a permanent policy that will last for the rest of your life as long as you continue to pay your premiums. These policies do offer a smaller death benefit compared to other traditional life insurance policies, but they are also much easier to be approved for.
This type of insurance is commonly referred to as burial insurance as it is designed to provide coverage for end-of-life expenses, such as the costs associated with funerals or medical costs. And, as the policyholder, you will choose a single beneficiary or multiple beneficiaries that will receive a payout amount to use towards these costs and your final wishes. This payout amount is known as the death benefit.
Your beneficiaries can also use this death benefit for whatever they please, which can include paying some of their own bills or even paying for a vacation. While this is completely fine, it’s up to you to make sure that if you have end-of-life expenses or wishes that you would like to be covered by this death benefit, to talk with your chosen beneficiaries about these exact needs.
Types of Final Expense
There are two types of final expense insurance policies:
• Guaranteed Issue Life Insurance: These policies are the easiest to apply for as they offer an almost 100% approval rate, regardless of your health status. You also won’t have to go through a medical exam to prove your eligibility like you would with traditional life insurance policies. Guaranteed issue policies are generally more expensive than simplified issue and can offer death benefit coverage amounts up to $25,000.
• Simplified Issue Life Insurance: If your health is still considered as moderate risk, but not as high of a risk that you would qualify for guaranteed issue, you may qualify for simplified issue. These policies may have you answer a medical questionnaire, but no medical exam is required. Simplified issue also offers death benefit coverage amounts up to $50,000.
Who Is Final Expense Best For?
Final expense insurance is typically best for seniors and those with poor health who do not qualify for traditional life insurance policies. Even though these policies offer a smaller death benefit compared to other life insurance, these are still a good alternative because of their affordability and no-medical exam qualification.
Need Final Expense? We Can Help
If you think a final expense policy may be right for your situation, reach out to Medicare With Jake today. Jake will help you compare all your options to make sure you are getting the coverage you need.
