The golden years are a time to sit back, relax, and enjoy time with children and grandchildren. There is, however, the lingering fear of the inevitable end and the impact it would have on your family. The financial consequences, in particular, can be the most troubling aspect of death and the subsequent funeral.
It doesn’t help that funeral expenses have been steadily shooting up. This significantly affects economically struggling families, as out-of-pocket costs can stress them further. Fortunately, burial insurance is present to cushion such impacts. Sites like https://insuranceforfinalexpense.com/best-final-expense-insurance-companies/ have the expertise to advise you on choosing the most suitable funeral insurance plan from the leading industry players, like State Farm, Colonial Penn, Mutual of Omaha, etc.
What to Account For Before Buying Funeral Insurance
Insurance for Final Expense elaborates on all aspects of buying burial insurance. Its founder, Gary P. Cubeta, established the company to guide seniors and others alike on getting the best policy (more on that on this site: https://insuranceforfinalexpense.com/best-final-expense-insurance-companies/). With such unbiased advice from the independent agents and general guidelines on different factors associated, you can find the best funeral insurance policy.
The Waiting Period
It is a common practice of the burial insurance industry to have plans with guaranteed acceptance. This means the plan will be offered without the qualification criteria to screen regular insurance buyers. As there is no such thing as free lunch, the caveat to this convenience is the waiting period.
If your death occurs during this waiting period, your nominees will not get the insured amount. Most companies return the premiums paid until the time of death, while others might not do that either. Coverage truly starts only after the waiting period.
The typical waiting period is 24 months from the date of issue, though individual providers might have variations on that. Check with your advisor to know the exact period and know your risk appetite in a specific time and health conditions.
Final expense insurance premiums vary based on policy type, age, duration, amount insured, etc. Your financial and health condition will dictate which plan gives you the best returns without any hard recoil.
The lowest coverage values can be at around $1000, though the average minimum is around $2,000 to $5,000. The average premium is about $50 per month, with the average coverage opted for being $10,000. The maximum coverage is $100,000. You can choose any coverage amount between these ends. The lower your age, the lower will be your premium. The good news is that once accepted; these values don’t change.
Conduct an audit, either individually or with your agent, of your present and future financial situation. Take into account any other insurance policies you might have and frequency of payment, like monthly, semi-annually, or annually.
Term insurance policies check your health condition before onboarding, which final expense ones don’t do. These guaranteed acceptance policies will learn about your health condition by asking a series of health-related questions from a checklist and verifying your eligibility based on whether you answer “Yes” to any of those.
The strictness of the vetting process varies by company. Some are lenient, like Royal Neighbors of America, which can forgo even diabetes. Others like Standard Life and Casualty are very stringent, and only a “NO” to all of their health questions will qualify you.
Your medical history/records will be checked during the verification process, which could stretch back up to three years in some cases. Common conditions considered are asthma, chronic kidney conditions, liver conditions, heart conditions like cardiomyopathy, AIDS, mental ones like Alzheimer’s, schizophrenia, bipolar disorder, paralysis, and similar conditions, etc. Your surgical history and any transplants will also be considered, as well as habits like drinking and smoking.
Type of Plan and Final Payment Mode
Most plans come with whole life coverage, meaning you’ll be covered for the full duration of your life. They build cash while not changing premiums. There are simple plans that get you enrolled, sometimes without the waiting period, and work like regular insurance. Graded plans have step-by-step payouts based on time. Health insurance is also bundled sometimes.
Many insurers allow your beneficiary to use the money not just for funeral expenses but also for paying other charges like medical bills. Some transfer the money directly to the funeral home, while others to a trustee. You can choose how and where the money goes.
A loved one’s death is not easy to handle, but with final expense insurance, some of that grief can be eased.