Planning for your end-of-life arrangements is not fun, but it is one of the most important parts of getting older. If you need insurance for burial costs or funeral expenses, you may be looking to purchase a policy to reduce your end-of-life costs.
Final expense insurance is available from several insurance companies across the nation, many of which offer a variety of coverage options. As such, the specific requirements for purchasing a policy may differ depending on the company you choose.
You can purchase final expense insurance in a guaranteed issue policy or a simplified issue policy.
A guaranteed issue final expense insurance policy is open to nearly any applicant, regardless of their health. A simplified issue policy, on the other hand, may be off-limits to people with certain illnesses.
To get a simplified issue policy, you must generally complete a health questionnaire. The insurance company will use this form to determine if you qualify for coverage and, if you do, the cost of your monthly premiums.
Although a simplified issue final expense life insurance policy requires you complete a health questionnaire, you do not need to complete a physical exam to get coverage.
The cheapest final expense insurance policies are usually available for policyholders in good health. Companies may increase your premiums if you are determined to have a negative health condition. Likewise, you may have a more expensive policy if you are older than 70 years of age.
Most companies that sell life insurance for funeral expenses have age requirements. Generally, you must be between the ages of 50 and 85 to qualify for coverage. However, these regulations may vary between companies.
Some of the most affordable final expense insurance policies are given to people who do not participate in risky health behaviors. So, if you do not smoke or use tobacco, your monthly premiums could decrease.
Since final expense policies are meant to provide minimal coverage, you may find it a bit difficult getting coverage if you have a terminal illness (one that is expected to result in your death). These types of health conditions typically come with higher medical costs, and final expense policies may not cover the entire amount of outstanding medical bills.
When you’re ready to purchase a policy, the next step is to start comparison shopping for coverage options. You should get several final expense life insurance quotes from a variety of insurance companies so you can compare the policies available from each one.
Some companies may offer you a better plan; others may offer you lower premiums. The best final expense insurance policy is one that fits your budget and provides you with a suitable death benefit to help your loved ones ensure your final wishes are met.