Seniors looking for final expense policies should be smart. While shopping for the best rates, you may come across vast information on the web. Instead of assessing the insurance rates based on random bloggers’ work, consider reading an expert’s review of the same like John Hancock reviews by Gary P. Cubeta on Insurance for Final Expenses, or speak to an agent.
A particular carrier does not commission independent insurance agents. Hence, they will work for your benefit and get you affordable price quotes.
What Expenses Come Under Your Burial Insurance Coverage?
Burial insurance or final expense policies cover end-of-life expenditure. This financial benefit includes funeral arrangements, legal and medical fees, credit card bills, embalming, cremation, or burial plot expenses.
Upon your demise, your loved ones will receive the death benefit, partially or entirely, based on the circumstances. Given that average funeral costs can range around $10,000, your policy can reduce a massive financial burden.
Depending on the policy you select, the coverage amount can be between $2,500 and $50,000.
Cost of Final Expense Insurance
Final expense insurance is designed for seniors, retired people, or those in less-than-healthy conditions. As you can see, the risk for the insurer will be high. For this reason, the premiums are on the higher end compared to term life policies.
However, the costs are justified because you get a bundle of features, like:
Based on your answers to the minimalistic questionnaire, your application will be instantly approved.
No Medical Exam Needed
Burial insurance policies are called simplified issue insurance. Meaning, there is no need for medical exams.
With this type of modified insurance, there are no questions asked. Your beneficiary will also receive partial benefits if you pass away during a 2-year waiting period.
The premiums stay the same all through your life. So, if you buy a policy at 50, you can reap significant financial savings.
Control over Spending
Your beneficiary can use the proceeds as they see fit for the expenses mentioned earlier. Compare this to funeral insurance, where the final amount goes to the funeral home.
Burial Insurance Type Determines the Rates
There are two types of policies: simplified and guaranteed issue life insurance. Both have some similarities but slightly differ in the pricing, maximum benefit amounts, underwriting process, etc.
There have been almost 100% approval rates with near-certain eligibility for everyone that applies. Sometimes, the insurance provider may ask you about terminal diseases. However, several companies cover even severe diseases and health conditions like cancer and HIV.
So, irrespective of your health status, guaranteed issue insurance can provide coverage. But this factor makes the prices go up, and these policies are among the most expensive options. Furthermore, the maximum coverage amount offered will be lower, at around $25,000.
During your research, you may come across the term simplified issue. This option is ideal for applicants that cannot qualify for a conventional life insurance policy. If you are considered a moderate risk-taker, and the company still rejects you, choose simplified issue burial insurance.
There is a detailed medical questionnaire and higher maximum coverage of around $50,000. However, you do not have to undergo a medical exam.
Should You Get Final Expense Insurance?
When you are on a budget too tight to afford standard life insurance, a final expense policy is better. As your family grieves your death, they do not need to worry about bills too. This insurance will help them deal with huge funeral costs, debts, or medical and other fees.
If you already have insurance, but it covers only a portion of the expenses, supplement it with burial insurance. Rather than relying on random ratings, go through detailed reviews of the insurance like John Hancock reviews or seek an agent’s help for more accurate information.