By choosing final expense life insurance, you relieve your family of the expenses they would be responsible for after you pass away. Ideal for seniors, these policies are usually opted for by people between 50 and 85. There are specialized schemes for seniors who are over 80 years old.
Final expense insurance covers all your final expenses, including funeral expenses, final medical bills, and legal expenses. Insurance expert Gary P. Cubeta from Insurance For Final Expense recommends understanding the factors based on which an insurance company decides its final expense quote before applying for a final expense insurance policy.
Age
The age of the applicant plays an essential role in determining the final expense quote. Companies offer different slab rates to persons of different age groups. If you plan on applying for final expense insurance, you may want to find out which age category you fall under and then apply for an appropriate policy. Quotes for people of higher age groups may tend to be higher.
The final expense insurance quote for a senior who is over 80 years old will be considerably higher than the quote for a person who is 50 years old. It may not be advisable to wait to apply for final expense insurance since insurance costs are only expected to rise in America.
Gender
According to insurance experts, the final expense quote for women is lower than quotes for men. The variations in quotes for men and women may only be slight. The average cost for a funeral in the US is around $7500. The quote for final expense insurance will be slightly higher than this rate. Insurance companies generally offer a lower premium for women.
Overall Health Conditions
Most insurance companies require the applicants to undergo medical checkups and examinations to determine their eligibility for insurance. Most final expense insurance providers don’t insist on medical examinations. Unlike life insurance, final expense insurance is specifically to cover burial expenses and other related expenses. The coverage period is much shorter than that of life insurance policies. While detailed checkups or assessments may not be part of the application process, the insurer may pose fundamental questions about the applicant’s health.
Experts assert that the applicant should notify the insurance company of any pre-existing medical condition he/she may be afflicted with. The final expense quote for persons with preexisting conditions may be higher.
If the applicant has a condition that could lead to their death in less than two years, the application may be rejected. There are specific policies designed for people with pre-existing conditions. If you have a severe pre-existing condition, you could consider applying for “no medical examination” policies.
A variety of medical conditions like Diabetes, cancer, and Parkinson’s disease qualify as pre-existing conditions. The applicant may still be eligible for final expense insurance if the condition is not severe (it is not likely to bring out the person’s death in less than two years).
Lifestyle
Insurance companies may assess your lifestyle choices before finalizing a final expense insurance quote. People who smoke may be charged a higher premium than people who don’t smoke. Tobacco dependence could lead to health issues like cancer, respiratory issues, and lung infections. Some insurance companies may be more lenient towards e-cigarette smokers. It would be unwise not to disclose that the applicant smokes while applying for final expense insurance.
The insurance company evaluates the reason for a person’s death based on final medical records before releasing the claim. Beneficiaries will lose their eligibility to claim the amount if the company discovers that the details in the application were not honest.
Policy Type
You can choose from different types of final expense insurance policies. Specialized policies like green burial policies may be bear higher quotes than others. The quote would also depend on the funeral type chosen by the applicant. The price of cremation may differ from the price of burials.
If you want the policy to cover more expenses, you may have to pay higher premiums. The cost of final expense insurance could be anywhere between $7000 and $50000. Some people opt for expensive policies to be extra cautious. The beneficiary may use the coverage amount for any purpose they deem fit.
Wrap Up
Final expense insurance coverage is highly beneficial. It relieves your loved ones from the stress of trying to arrange funds for your final expenses after your demise. The coverage amount can be used to meet funeral expenses, settle liabilities, or any other purpose. Final expense insurance policies are typically processed in less than 48 hours.
