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Talking about end-of-life planning is never a fun topic to discuss, but it’s always important to be prepared so your loved ones won’t have to bear any of the expensive costs that could arise after your passing.
The purpose of final expense is to pay for end-of-life costs. These costs typically include a funeral and burial, which can be thousands of dollars. However, things such as medical bills and credit card debt can also be paid for with the policy.
Final expense is a small type of whole life policy, resulting in a much lower death benefit than a traditional whole life policy. The death benefit for a final expense policy can be between $2,000 and $50,000.
You always want to pick someone you trust as your beneficiary so they can spend the death benefit in the way that you intended. Just keep in mind, though, that the death benefit can be used in any way the beneficiary sees fit! This means if any funds are left over after covering your funeral costs, your beneficiary can use them towards whatever they want.
There are two types of final expense insurance you should take note of if you’re considering final expense!
A simplified issue policy is best for those who don’t qualify for traditional life insurance but are only considered a moderate health risk. You won’t be asked to have a medical exam to qualify, but you will have to answer a medical questionnaire.
The death benefit for this policy can be up to $50,000.
A guaranteed issue policy is best for those who have a higher health risk since they offer near-certain approval. A medical exam or questionnaire is not required. However, since insurance companies are taking on more of a risk to insure you, these policies will be more expensive than simplified issue.
The death benefit for this policy can range from $2,000 to $25,000.
As you can see from this chart, qualifying for a final expense policy is fairly easy. While traditional life insurance policies will typically require you to have a medical exam to determine if you’re in good enough health to qualify for a policy, a final expense policy doesn’t do that. This makes it a great option for those in poor health who don’t qualify for traditional life insurance!
If you’re wondering whether or not final expense is the right policy for you, we’re here to help. Looking through all of the different insurance policies available can be stressful, so let us assist you in the process.
When you work with Health Care Solutions, you know your best interest is at heart!