This is a whole life policy. It doesn’t expire, and your loved ones are guaranteed the death benefit as long as you pay your premiums.
Policies range from $2,000 to $50,000. Some companies have different limits on how large of a policy you can get.
Like any other insurance policy, the premiums will be lower the younger you are. But what sets it apart is its inclusivity – older applicants who have a hard time getting life insurance will have final expense as a viable option. In fact, final expense is designed for those individuals. Some policies allow individuals to enroll up until the age of 80.
Once you pass away, the death benefit will be released to your loved ones.
There are two types of final expense insurance – simplified issue and guaranteed issue.
Simplified issue involves a medical underwriting component. However, it holds an advantage over other forms of life insurance because this is reduced to a medical questionnaire. There’s no need to schedule an appointment to see a doctor. It’s a quick process, and it can be completed within minutes.
Guaranteed issue final expense has no medical underwriting whatsoever. No exams, no questions – just sign up. This is the best option for individuals in poor health. While the premiums are higher and the death benefit is lower, it gives an outlet for helping the financial needs of loved ones.
The most common reason is to get a small, low-cost policy that will help cover funeral expenses. Funeral costs can be anywhere from $7,000 to $12,000. Final expense allows your loved ones to pay for your funeral without having to pay out-of-pocket.
But there’s more – it can be added to a life insurance policy you already have. You can get it as a way to provide a surplus for your beneficiaries to use for any purpose. The death benefit is tax-free and isn’t restricted to any particular use.
Final expense is an illustration of how a little bit goes a long way. Its death benefit may seem insignificant compared to other choices, but in reality, your loved ones will have some form of financial relief that they’ll be able to access when they need it the most.
Alvarado Master Agency is here to help you secure the policy you need. If you’re interested in helping your loved ones after you pass away, we can find the exact policy that accomplishes that for you, and for a low price.