With a standard life insurance policy, the idea is to provide coverage for the unexpected, primarily for the unexpected event of your early death, usually due to an accident or other unforeseen event.
A senior final expense life insurance policy differs from a normal life insurance policy in that, rather than making provision for your unexpected death, it is a policy designed for senior citizens to make provision for when that demise actually occurs and to allow them to plan the type of funeral send-off they would most like to have.
Not everyone needs a full-blown life insurance plan. Because these plans are a smaller form of coverage, they are going to be much cheaper than a traditional insurance plan that could provide a million dollars or more of coverage.
You should never buy an insurance policy before knowing how much coverage your family needs.
Funeral Costs Today
The cost of arranging the kind of funeral that most people would like their loved ones to have today, has risen to well over $10,000. This includes the cost of the service, a suitable casket, the burial plot and the obituary, not to mention the cost of the catering for the mourners.
If you have been ill for some time prior to your death, you may well have incurred large medical bills and your surviving family will be left to pay these. Also, if when you die, you have any other outstanding debts these will also be left for your surviving family to pay for and this in itself can create a massive financial burden for them at a time when they least need it.
The cost of arranging a decent funeral and burial has kept on rising year by year, with where you live having a big impact on how much the funeral costs will be. The more affluent areas tend to charge a higher price for burial plots and when a loved one dies, you want to be able to arrange the most appropriate send off for them and also want to choose a suitable casket.
Again, casket costs vary greatly and the type and quality of the casket chosen for the burial can add an unexpectedly large amount to the final total. Your loved ones will want to give you the best funeral possible as a tribute to your life, however, even the most basic of funerals will cost in the region of $5,000 and, although Social Security pay a death benefit to the surviving spouse of $255, this is nowhere near enough to cover the complete cost of a decent funeral.
It is a point to note, however, that if there is no surviving spouse, this death benefit is not even paid out. After taking all of this into consideration, many senior citizens are now looking at purchasing final expense life insurance policies to ensure that when they die, all of their final bills are settled, they have the type of funeral they want and ultimately their loved ones left behind have less to worry about.
A funeral is not the only expense that you’ll need to consider when looking at your insurance needs. There are several other categories that you should account for to guarantee that your family has the money that they need.
To get started, what other debts would your family have to pay? Depending on your financial situation, they may not be responsible for much, but you want to ensure they have the money for those bills.
Another factor that you’ll need to consider before buying a final expense plan, you’ll need to look at your annual income and how many people rely on that salary every year. If you still have people that rely on your paycheck, you need a larger insurance plan.
The Main Benefits Of A Final Expense Life Insurance Policy:
There are many benefits of a final expense life insurance policy, however the main points to consider are as follows:
- The application process is very easy and straightforward and there is no medical exam required. If you’re in poor health or you have a pre-existing condition. One example we see a lot is applicants looking for life insurance for people with diabetes, there is a chance that you could be delinked for high-risk life insurance, but with a final expense policy, you don’t have to worry about that.
- The premiums are always guaranteed to be level
- The death benefit that is paid out on a final expense life insurance policy is tax free.
- There is no worrying about whether or not the policy will pay out, because it is a final expense type of insurance, death is the inevitable outcome and the policy will definitely pay out.
- Ultimately, you know that all final bills will be taken care off and your family won’t have to worry about finding the money to pay them, thus giving you total peace of mind.
- With a final expense insurance policy, you can get approved for insurance coverage much faster than you can with a traditional insurance policy.
How Do I Find The Best Final Expense Life Insurance Policy For Me?
Although you will want the best possible level of cover available, usually senior citizens who are looking to purchase this type of final expense life insurance are getting a fixed monthly income, such as a pension.
They may not have a very large amount of disposable income they can use for buying a final expense life insurance policy, therefore it is very important to get not only the best level of cover, but also at the best premium rate available. No one wants to pay more than they have to for adequate final expense life insurance coverage.
There are very many final expense life insurance companies offering their services, so it is always better to contact an independent company such as ourselves, who will be able to search out the most competitive and suitable deal which can then be tailored to suit your precise needs.
Here’s more detailed information based on age:
We’ve spent years honing our business relationships and practices. We’ve mastered getting the cheapest coverage available through the 60 carriers we work with.
Our company is independent and impartial and we take pride in giving our customers the best service possible, we never pressure our customers as we realize that buying a final expense life insurance policy is not a decision to be rushed.
Our team of experienced life insurance advisors will compare the information from all of the final expense companies and present it to you, our goal is to ensure that your needs are met.
You will see many final expense life insurance companies advertising on TV like AARP or SelectQuote Life, however, these can be very expensive and usually we find that the prices we can offer you are up to 50% cheaper than those advertised on TV.
Just give one of our friendly and experienced advisors, a call and we will search our database of companies and provide you with a no obligation quote that you can consider in your own time.
That’s the long and short of final expense insurance plans.
Hopefully this gets you the info you need to go out there and buy the best plan possible.
What’s your next step?
Finding a qualified independent agent. Look no further than ours at Rootfin.
If you have a question or just want further information: Our team of experienced and caring, life insurance advisors, are always on hand to discuss and answer any final expense life insurance questions you may have, contact us.