Final Expense Life Insurance
Posted in No Exam Life Insurance last updated on February 23, 2023
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Final Expense Life Insurance is a wise purchase to consider especially if you want your loved ones to avoid having to shoulder the burden of not just having to incur expensive funeral costs but other unexpected expenses as well.
The average cost for a funeral in the United States is between $7,000 and $10,000.
However, there are also other reasons and benefits when considering Final Expense life insurance which you might not be aware of.
There are also different types of policies offered because the parameters covered between the different life insurance companies are different for each. The policies which are available have different requirements such as the ages they cover, application process, policy waiting periods, and they can vary with different coverage amounts.
We will explain the differences below so you can make an informed choice. As always, if you have any questions about Final Expense Life policies or you just want to know what the lowest available rates are; give us a call at 858-703-6178 or use the Ask A Question tab to send an email.
Reasons To Buy A Final Expense Life Insurance Policy
The main purpose to buy one of these policies is to ensure your surviving loved ones do not become financially burdened when you pass away. There are a number of things to consider when deciding how much coverage you need.
It’s not just the expensive cost of a funeral to keep in mind, as there are other financial costs involved when you pass away such as:
Legal Costs – In settling an estate, it is often incumbent that an estate will have to be settled through probate which entails legal costs that can be quite expensive.
Debts – At any given time when you pass away it is likely you might still have some outstanding debts that may have to be paid by your surviving family members. This could include any outstanding debts for your vehicle, credit cards and other forms of debts.
Medical Expenses – Even though you likely have some form of health insurance, your coverage may not necessarily be enough to cover all the medical expenses you incur due to a serious or lengthy medical condition. Your beneficiaries or estate will be responsible for these costs when you pass away, so it’s a wise decision to have extra funds available to pay for these outstanding bills.
Leaving A Financial Legacy – Although not generally used for this purpose, you might want to leave a bit of cash to help your loved ones to enjoy a higher quality of life. For example, perhaps you want to leave something to help your grandchildren with college expenses.
Coverage limits for Final Expense life insurance policies generally tend to be much lower than standard life insurance policies, but contain limits high enough so your surviving family members can still have some left over cash to use as they need.
Final Expense Life Insurance Policies Offered By Abrams Insurance Solutions
You should know that we have access to dozens of life insurers that provide Final Expense Life Insurance Policies.
Listed below are just a few of the top companies which offer these policies.
You will see that these sample companies offer different types of policies, have different age requirements, waiting periods or none at all, various underwriting requirements, and have different coverage amounts.
Some policies can be issued same day while others require a brief waiting period – generally within as little as a 48 hour waiting period.
A Sample of our Final Expense Life Insurance Options
ISSUE AGES: 50 – 85 Years of Age
LENGTH OF GRADED DEATH BENEFIT PERIOD: 3 Years
HOW TO APPLY: E Application
UNDERWRITING REQUIREMENTS: Medical Information Bureau (MIB) AND Prescription Drug Check (RX)
COVERAGE AMOUNTS: Up to $35,000
ISSUE AGES: 40 – 80 Years of Age
LENGTH OF GRADED DEATH BENEFIT PERIOD: 3 Years
HOW TO APPLY: E Application WITH Phone Interview
UNDERWRITING REQUIREMENTS: Medical Information Bureau (MIB) AND Prescription Drug Check (RX)
COVERAGE AMOUNTS: $5,000 – $35,000
ISSUE AGES: Up To 80 Years of Age
LENGTH OF GRADED DEATH BENEFIT PERIOD: NONE
HOW TO APPLY: E Application WITH Phone Interview
UNDERWRITING REQUIREMENTS: Medical Information Bureau (MIB) AND Prescription Drug Check (RX)
COVERAGE AMOUNTS: $2,000 – $50,000
ISSUE AGES: 45 – 85 Years of Age
LENGTH OF GRADED DEATH BENEFIT PERIOD: 2 Years
HOW TO APPLY: Online Application (Issued Same Day)
UNDERWIRITNG REQUIREMENTS: Guaranteed Issue
COVERAGE AMOUNTS: $3,000 – $25,000
ISSUE AGES: 50 – 80 Years of Age
LENGTH OF GRADED DEATH BENEFIT PERIOD: NONE
HOW TO APPLY: E Application
UNDERWIRITNG REQUIREMENTS: Guaranteed Issue
COVERAGE AMOUNTS: $5,000 – $25,000
Get a Instant Final Expense Life Insurance Quote Now!
For Final Expense life insurance quotes, please call or email us to get advice and find the lowest cost policy for your family. We will shop the leading final expense life insurance companies on your behalf to save you time and money on your purchase.
Benefits of Final Expense Life Insurance Policies
The main benefits of these policies will be apparent especially if you are over 50 years of age and/or if you are not in the best of health:
No Medical Exam Required
You will not be required to take a medical exam to get approved for a policy. This can be very advantageous for those who have developed health issues and who might otherwise be declined for a standard life insurance policy.
However, as policy types vary from company to company, some insurers may ask several questions on an E Application only, or may require an E Application along with a phone interview with an agent.
Most life insurance companies will likely conduct a basic medical search using data banks which are available to all insurers. The 2 most prominent types of searches performed include a search through the MIB (Medical Information Bureau) and an RX (Prescription Drug Check). If you have concerns about what might be in your records, call us so we can help guide you to the company that will be most likely to approve you.
Quick Approval
Depending on the insurer, you could get same day approval for a policy or generally expect to wait no more than 48 hours in most cases.
Convenience
These policies are very convenient to buy because you can simply apply for them online and can get approved very quickly especially if you need a policy right away.
Tax-Free Death Benefit
Your beneficiaries will receive the life insurance proceeds as a lump sum payment. Life insurance proceeds also have the added benefit of being non-taxable so the money can be used in any manner your beneficiaries need to use it.
Premiums Remain the Same
When you are assessed a premium you can take comfort that the premium you are charged will stay the same and not increase over the age of the policy.
What Does a Graded Death Benefit Mean?
You may have noticed that some of the samples shown above in the table list time periods such as anywhere from 2 or 3 years. What is meant by the graded death period is that your beneficiaries will receive a return of premium instead of the full death benefit, if you pass within 2-3 years of taking out the policy. Many insurance companies will include 5% or 10% interest with the return of premium which is more than you will find elsewhere (guaranteed). If death is accidental, then the full death benefit will be paid from day 1 for most companies.
The reason for this graded benefit is so people who may only have a few months to live don’t take out a policy and expect the full death benefit to be paid immediately. However, receiving a guaranteed 5 or 10% interest on your money is a very good return at the time of this writing.
Are Final Expensive Policies More Expensive?
Generally, these types of policies do cost a bit more for the simple reason that the insurer is taking more of a risk to insure you because they do not require you to take a medical exam.
The life insurance company is also assuming a higher risk to insure you because they have much less medical information to properly evaluate your current physical condition. Consequently, the insurer will charge more for this type of policy than for a similar fully underwritten life insurance policy of equal value.
The additional cost is still very affordable. However, you should also be aware that your age will also play a factor in the cost. A person who is 70 years of age or older will pay more than someone who is 50 years of age because life insurance does become more expensive to buy as you age.
This is an important point to keep in mind because the younger you are when you buy a policy, the more money you will save on your premiums.
How Much Final Expense Life Insurance Can I Buy?
Contact us to review your options for affordable Final Expense Life Insurance!
The amounts of final expense life insurance coverage vary from company to company. Typically, the policies offered by all insurers are much less than what you would normally be able to buy when considering a standard life insurance policy.
Generally, the amounts available for these policies range anywhere from around $2,500 – $100,000 in policy coverage.
What Types of Final Expense Policies Are Available?
Although we are referring to this type of coverage as Final Expense life insurance, most of these policies are sold as what is known as “Guaranteed Issue” life insurance. They are a form of whole life insurance that will cover you for the rest of your life.
Can I Be Declined for Coverage?
Unfortunately, the answer is yes as there are certain situations where you can be declined for coverage due to more severe medical situations.
The main reasons why a person might be declined for final expense coverage could include:
• You are currently being treated in hospital for a serious medical condition
• You are currently residing in a nursing home
• You are currently residing in a hospice
• You have been advised by your attending physician that you less than 1 year to live
• You are older than 89 years of age
• You have tested positive for either HIV or AIDS
• You have recently been diagnosed with either Dementia or Alzheimer’s disease
Should any of these situations apply to your situation, you might be best advised to speak with a knowledgeable life insurance agent such as myself who can best advise you about other types of coverage that you might be eligible to receive instead.
Where Can I Find Affordable Final Expense Life Insurance?
You should always use the services of an independent agent such as the ones here at Abrams Insurance Solutions because we research the companies and perform the comparison shopping for you.
We can provide you with quotes from the most reputable companies and provide you with valuable advice on your life insurance needs or answer any questions you have about life insurance.
We have access to over 70 life insurers and know which companies have the most affordable Final Expense life insurance policies.
If you are shopping for Final Expense Life Insurance, call us if you have questions, need some advice, or want to start your application at 858-703-6178. Remember that we work for you and not the life insurance companies and our goal is to find you the right Final Expense policy at the best price today.
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