If you were to die tomorrow, would your family be able to cover the cost to bury or cremate you? If the answer is no, then read on to get answers on how this financial burden can be alleviated.
Let’s face it, everything in life costs. And unfortunately, the cost for a funeral
service and cremation can range anywhere from $3,000 to $20,000, and the grieving period is no time to make complicated financial decisions.
Final expense insurance can remove extra stress on families as they cope with the loss of a loved one. Here is a guide to empower you with information on choosing the best final expense insurance for you.
What is final expense life insurance?
Final expense insurance, often called burial insurance, is usually life insurance with a smaller death benefit amount (usually between $2,000-$50,000). Because of the smaller death benefit amount, it is more affordable, and no physical medical exam is required. The death benefit amount is used to cover a burial, cremation or any other expenses that are left over when someone dies.
Some insurance companies offer final expense insurance that cover you for a lifetime, whereas some insurance companies will provide final expense coverage for only a certain amount of years. Being that death is not an “if” situation but a “when”, I recommend whole life final expense insurance that covers you for your whole life.
CAVEAT – There are some burial insurance that only cover you for a certain amount of time. This is called term life insurance, or what I like to call it – temporary life insurance.
With temporary life insurance the payments can increase in certain increments, like every 5 years, so this is another reason that I recommend whole life final expense insurance.
Another thing to consider with term life insurance for final expenses is once the policy ends at the time stated in the policy, you have to look for coverage at an older age with current health conditions, if there are any.
Who is final expense insurance best suited for?
Whole life final expense insurance is a better alternative for a person who is on a limited budget, who has not saved up for their final expenses or has no assets that can be converted quickly to cash. Burial insurance is popular life insurance for people between 50-85 years old for lifetime protection against the cost of a burial or cremation.
How much coverage should I get for my burial insurance?
Unfortunately, prices are always going up. And an earth burial, as well as a cremation, are no exceptions to the rule.
At the end of 2021, a cremation can start on average, at $2,300 and an earth burial at $7,848. In a nutshell, you should buy what you can comfortably fit in your budget. And if you can only afford half a loaf, then get the half of loaf. It will be easier for your family to come up with half of your final expenses, than all of it.
How much does burial life insurance cost and how much coverage can I get?
Your monthly payments are determined by your age, gender, health, and how much coverage you buy. On average, most premiums are between $20 – $200 a month, and death benefit amount can be anywhere from $2,000-$50,000.
When should I get a burial life insurance policy?
It is best to get a funeral expense life insurance policy when you are as young and as healthy as you are now.
The application process is very simple, and it doesn’t take long. Click here to see the rates and click here to apply now.
FAQs About Final Expense Insurance
What type of coverage is it?
Final expense insurance is the kind of life insurance that covers you for your whole life. It also has:
Monthly premiums that are guaranteed to never increase.
A death benefit that never decrease.
Coverage that lasts a lifetime.
No physical to see if you qualify.
Keep in mind that based on your health, there are different levels that you will qualify for.
1) Qualifying for the Level or Simplified plan
The Simplified, also known as Level, plan gives immediate coverage, as well as the lowest rates for a person who can answer no to all of the health questions that the final expense insurance company asked on their application. Each life insurance company has their own set of health questions.
2) Qualifying for Standard
Some insurance companies will still give you immediate coverage with a higher premium than the simplified plan. The main difference with Standard vs. Level (Simplified) is if you answer yes to one of the health questions that are asked at the bottom of the application.
3) Qualifying for Graded
If you have to answer yes to health questions that are in the middle part of a final expense life insurance application, some life insurance companies will offer a graded final expense plan where it covers you partially the first two years of having the policy. This type of coverage will usually pay a percentage of the death benefit amount.
4) Qualifying for Modified
The burial insurance company will usually offer this type of coverage for a person who has recent severe health issues. It usually costs the most, and the death benefit is not paid if the insured passes in the first 2 to 3 years of having the policy. The good news with this type of coverage is if death occurs in the first 2 to 3 years, the premiums plus interest are given to the beneficiary.
5) Qualifying for Guaranteed Issued
This type of burial insurance offers permanent coverage, and no health questions are asked. However, keep in mind that this plan usually has one of the higher premiums and a two-year waiting period. This means that if death occurs during this time, only the premiums and interest are given to the beneficiary.
Who can get a final expense life insurance policy?
Anyone who has the mental capacity to answer health questions between the ages of 45 and 89 can apply for a policy that lasts a lifetime. If you are in this age group, there is a 99% chance we can help you get an affordable final expense plan.
What’s the difference between “burial insurance,” “final expense insurance,” and “funeral insurance”?
There is no difference. It is life insurance that people use to pay off a burial, a funeral, or final expenses. You will see different companies (as well as myself) use these terms interchangeably, but they all mean the same.
Can I get a burial insurance policy if I have health issues?
Most definitely! 99% of the time, we can get you qualified for permanent life protection that fits in your budget.
Here are some health issues that are common for the people we have helped.
Breathing problems like COPD, emphysema, chronic bronchitis, and asthma
Being previously declined for life insurance
Heart bypass and stents
Mini strokes and full blown strokes
Irregular heartbeat or atrial fibrillation/afib
Sickle cell anemia
Pacemaker or defibrillator insertion
Epilepsy and seizures
And these were just some health issues. We help all people looking for a life insurance plan to cover final expenses.
Is it easier to get a burial life insurance policy with no health questions?
No health question burial life insurance policies cost more and come with a 24 month minimum waiting period. So if you pass away during the first 24 months of having this kind of policy, the insurance company will only refund all your premiums and about 10% interest.
Most people, when asked, would rather have a final expense policy that covers them immediately, especially when it cost less and it’s easy to qualify.
What if I don’t qualify for immediate coverage?
For certain health issues, a policy with no health questions may be best. For example, if you have any of the following health problems, a no-questions-asked final expense policy may be your best option.
Living in a nursing home
Aids or HIV
However, before signing up with any final expense plan, give us a call first – (877) 427-9380. Most of the time, you can qualify for a program that does not cost as much and give you better coverage.
If you have a condition that is not on the list, no worries. Give us a call or click here to have a representative call you to let you know for sure which final expense life insurance plan is best for you.
I am on a very strict budget. What is the smallest death benefit amount I can get?
Some insurance companies will allow you to get a policy with a death benefit amount as little as $1,000.
I am ready to apply. How do I apply for a final expense life insurance?
It is really simple and doesn’t take long to apply for burial life insurance. The application is done over the phone and/or by email, and no insurance agent or nurse will come to your house. Here are the steps.
2. While on the phone, a licensed agent will have you answer some questions about your health (except for guaranteed issue policies).
3. Once you are ready for us to submit your application to the insurance company, you will “sign” your application in one of two ways:
Voice signature – This is done by you and your licensed agent with the insurance company. They will ask you questions to verify the information is correct, check your medical history, verify the premium amount, and that you want burial life insurance.
Email signature – The licensed agent will collect the needed information to complete the application. A link is then sent to your email to complete the application process by clicking on a few prompts.
Both of these processes will give you a decision within minutes!
You can fully apply over the phone without ever leaving the comfort of your home!
No longer a luxury, final expense insurance is a necessity. So what are you waiting for? Give yourself and your loved ones peace of mind today.
HedgeGuard Senior Benefits Group, LLC offers free, comparative insurance quotes on Final Expense Insurance from multiple insurance carriers so you can get the best possible rate.
Want to see how much we can save you? Click here to get an instant final expense or burial insurance quote.