5 Reasons to Buy Final Expense Insurance
Most people don’t like to think about death – and rightfully so, it’s not a happy topic by any means.
But there is a 100% chance we are going to die, right?
It’s going to cost money, right?
Many are shocked when they hear how much funerals cost. Typically, folks don’t think about putting final expenses in place until something happens – a family or friend dies and they hear about the problems paying for it. Or even more serious, you are the person paying for it because there wasn’t any final expense insurance in place.
If you’re the sole breadwinner of your family and you pass away unexpectedly, this is a lot of money to drop onto your loved ones, who are already grieving and not in a position to deal with another burden. This leads us to our first reason why you should consider purchasing final expense insurance.
Additionally, my parents couldn’t afford final expense insurance. So I bought final expense insurance for my parents because I couldn’t afford a $15,000 burial or the cost of cremation in Illinois. So I took insurance out on my parents so that I could afford the cost when they passed. Purchasing insurance for your parents is smart if you are going to be responsible for the cost.
1. It Funds Funeral Costs
As we stated earlier, final expense insurance for seniors provides coverage for any bills or debt you leave behind once you pass – funeral expenses being the big one. Leaving some money for your loved ones to use for anything funeral-related would undoubtedly be a relief to them.
2. It Aids with Medical Bills
If you have any outstanding medical bills after your death, it’s up to your family to pay them. A final expense insurance policy could give them the funds to either fully pay off your debt, or at least aid in the payments.
3. Cover the Mortgage, Rent and Car Payments
Speaking of using the death benefit for various reasons, what if you still had a mortgage left on the house, or just bought a new car? The last thing you’d probably want is for your mourning family to lose their house or default on a car note. With the death benefit, your family could use that money to pay for the loans, avoiding the burden.
4. You Can Take Control of Planning Your Funeral
While not all, some people know exactly how they want their funeral to go. Decisions such as whether to be buried or cremated, where you’d like to be buried or have your ashes put. Taking this out of your loved ones’ hands will not only be helpful but allows you to have peace of mind.
5. It Can Serve as a Gift
If you’d like, you also have the option to leave part of your death benefit as a gift to someone you care about – whether that be a family member or not. The money is yours to delegate how you choose.
Who Needs It?
So, what type of person should investigate getting final expense insurance?
This ties into some of the points we made previously. If your family would not be able to pay for your funeral and burial costs or go without an income after your passing, these are all good reasons to purchase a policy.
In addition, if you don’t currently have any sort of life insurance policy in place, or if you can’t qualify for any other type of life insurance, final expense insurance is a good way to ensure protection after you die.
Final Expense Options
With a final expense policy, you have the option to purchase up to $100,000 of coverage, and the coverage can extend up to age 100. Within this umbrella, there are a few different types of life insurance you can choose from:
- Term life insurance
- Whole life insurance
- Guaranteed universal life insurance
- Guaranteed issue life insurance
Term life insurance is a temporary form of life insurance that provides coverage for a certain number of years. This is generally
the cheapest form of life insurance because it’s temporary and most people outlive their policy. You can typically purchase a 10, 15-, 20-, 25-, or 30-year term, depending on your current age and other life factors.
Whole life insurance is permanent coverage that includes a death benefit plus an investment. With the investment component, it means that part of the premium you pay will go toward your cash value accumulation, which will theoretically build over time.
However, it is important to note that this accumulation is generally very minimal, if any. Whole life is also typically the most expensive form of coverage, as it does not require a medical exam to become approved. It provides coverage until the age of 80, and you can receive up to $50,000 in coverage.
Guaranteed Universal Life
Also known as GUL, Guaranteed Universal life insurance is thought to be somewhat of a hybrid between term and whole life. Instead of choosing coverage for several years like the term, you get to choose up until a certain age, such as 90, 95, 100, 105, 110, or 121.
Since the average lifespan of an American is 78 years old, it is essentially permanent coverage (like whole life). The monthly rates are a little more expensive than term life, but less expensive than whole life.
Guaranteed-issue policies tend to be a last resort for those who are looking to buy life insurance but can’t qualify for any other sort of coverage. If you are permanently disabled, have serious health issues, or have a mental disorder that you are currently collecting Social Security or Social Security Disability Income, guaranteed issue life insurance may be your best option. It is available to those between the ages of 50 to 80 and does not require a medical exam or medical questions for approval.
Best Companies for Final Expense Insurance
Every insurance company has its place. Each company does cater to certain health issues kindly – meaning they will provide first-day coverage for certain health conditions that other insurance companies will not. Favourites among brokers are:
Aetna Americo Mutual of Omaha TrueStages Ameritis TransAmerica
American General Royal Neighbors Ethos Prosperity Liberty Bankers
AND THE LIST GOES ON……
These are some of the go-to insurance companies for brokers because they all have their special area of health issues that they typically qualify folks for first-day coverage whereas other companies go straight to a two-year waiting period. Brokers tailor your policy specific to your needs, age and health – that’s why you should ALWAYS depend on a broker to find you the highest coverage for the lowest cost.
Questions? We Can Help!
Purchasing life insurance is a big decision, and you want to make sure you find a policy that best fits your needs & your wallet. That is where we come in!
At Final Expense Brokerage of America, we have helped thousands of families all over the USA with their life insurance needs, and we can help you too! Our agency is licensed in all 50 states, and we’re independently owned and operated.
Our goal is to match every person with the best life insurance options available by shopping and comparing rates with over 50 different insurance companies.
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Give us a call at 480-259-0599, or you can request a free quote online to compare rates and options from dozens of insurance companies at finalexpensebrokerageofamerica.com
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