You won’t be able to get the six-figure policy as you would with a typical life insurance policy, but this lower figure is by no means insignificant. The bare minimum is still enough to offer tremendous financial relief.
Final expense policy death benefits range from $2,000 to $50,000. You have the freedom to choose how large of a policy you want, within certain parameters. There will always be variables, and not every company has the same policy size limit. Some may offer $50,000 policies, while other companies won’t sell anything beyond $25,000.
Aside from differences between companies, the type of final expense policy also determines how much you’re able to get, and how much you’ll need to pay.
Simplified issue final expense has a larger death benefit because applicants are typically in better health, and their answers on the medical questionnaire indicate they’re at lower risk. Individuals with simplified issue final expense also pay lower premiums.
On the other hand, guaranteed issue final expense has a lower death benefit. It doesn’t involve any medical underwriting at all, but this also implies a higher insurability risk in the eyes of the company. Guaranteed issue policyholders pay higher premiums.
And like other forms of insurance, age and gender play a role. The older you are, the higher your premiums will be. Men also have higher premiums, because on average they do not live as long as women.
This will illustrate how much a person can expect to pay for a typical final expense policy of $10,000.
Monthly rates for men according to age:
Monthly rates for women according to age:
$10,000 is a common policy size because of how it relates to the reason why most purchase final expense insurance – funerals. That’s why it’s also known as burial insurance. Many will get this just to pay funeral costs alone, and funerals typically range between $7,000 and $12,000.
These low costs make final expense worthwhile, even if you already have life insurance. It can make all the difference for your loved ones.
At Alvarado Master Agency, we will find you the life insurance policy you need so that you can ensure that your loved ones will be able to have closure and peace of mind. Call us today for more information.