When you purchase final expense insurance, you’re looking at a policy that will disburse anywhere between $2,000 to $50,000 to your loved ones after your death. This death benefit is smaller compared to other life insurance policies, which can have payouts upwards of $1,000,000 in some cases.
This is a whole life policy, which means it doesn’t expire. The policy is in effect as long as you maintain your premium payments.
Medical circumstances can be the deciding factor for many. If you are older and/or in poor health (e.g. diagnosed with a terminal illness), chances are you’ll be denied from a standard life insurance policy. Or if you are able to get a policy, your premiums may not be affordable.
Final expense insurance solves this issue. Signing up doesn’t require a medical exam, and you even have the option to forgo answering medical questions during the enrollment process. Factors that would work against you are now non-issues. Final expense removes obstacles so that you can have a way to give your loved ones peace of mind.
The motive behind purchasing life insurance can make final expense insurance stand above the rest. It may not offer enough for your loved one to buy a new home or pay for all four years of college, but it still provides a substantial financial cushion.
Many buy it just to cover funeral costs, which are roughly $7,000 to $12,000 on average. Most final expense policies will cover this in full, but you have the option to go smaller or higher.
But there is no rule as to what these funds can be used for. Your loved ones may use it to help with monthly bills or cover certain debts. It may not be life-changing money, but it is a huge relief for those who need it, and you can’t put a price on that.
Age and health don’t bear the same extreme consequences on monthly premiums like in the case of a traditional life insurance policy.
If you have a $10,000 policy, for example, you’ll pay less than $100 per month unless you join at the age of 75 or older. It’s important to note that at that 75, the majority of policies may not allow you to enroll at all.
If you’re in an adverse situation and you’re unable to get affordable life insurance, final expense insurance is very much worth it.
At Alvarado Master Agency, we believe in getting you the most valuable policy because we value you. Regardless of age, health, or financial circumstances, we are here to make sure you are able to get the policy you deserve.