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Don’t Pay Too Much for Burial Insurance!

Burial policies, also known as final expense insurance, are small life insurance policies that are meant to pay for funeral costs and other final expenses. These types of policies are gaining popularity with seniors who find themselves without life insurance because their term insurance has ended, or because prior life insurance policies have lapsed. Many seniors think that there are no affordable options for them to leave money to their families to pay final expenses. A burial insurance policy is the best way for senior citizens to get affordable life insurance.

Some features of burial policies:

• Permanent insurance with level premiums that will never increase.
• Qualifying ages between 50 and 85
• No medical exam required and many health issues are ok
• Issued quickly and death benefits are paid quickly

What If I Have Major Health Issues?

Most burial policies are easy to qualify for, even if you have some minor health issues. The application usually consists of a health questionnaire and the life insurance company will typically check to make sure there is nothing in your health history that you did not disclose. But what if you have more serious health conditions? There are policies that are known as guaranteed issue final expense policies, and nobody is turned down. The premiums are higher, but for those who feel that they have no other option, these policies can provide peace of mind that their final expenses won’t be a burden on their families.

Which Company Has the Most Affordable Rates?

There are many companies that offer affordable burial policies for seniors and the elderly. Since each company has different underwriting requirements, the best company will differ from person to person. Your rates will depend on your age as well as your health history and smoking status.

We often worry about what would become of our loved ones should we pass away. We of course want them to be happy but there is also the concern of the high costs they might have to pay on our deaths. Funerals, along with everything else, have become much more expensive over time. If we pass on before those we love we want them to be taken care of. Final expense insurance plans, also called burial insurance, can save those we care about from this burden. These plans can cover the costs of expensive funerals and are often available with no medical check.

When you set someone up as the beneficiary of final expense insurance plans they are free to use the money however they need. However these policies are mainly designed to cover the exorbitant costs of funerals these days. These policies carry a cash value that can be borrowed against should the need arise. Often with these types of insurance the premiums will not increase while the benefits will not decrease. Unlike term life these policies do not expire after a set period. Since there is commonly no medical exam, you can apply for these kinds of insurance pretty easily. But even so it is a decision that you should take lightly.

Different state and local laws can affect the costs of funerals. Areas with limited land often have higher costs for cemetery plots. Even cremation can be fairly costly. Visiting a funeral home can give you rough idea of the costs your loved ones might be facing. They should have a written price list that you can examine to figure out the expenses of things life a casket and grave liners. While these prices are bound to change by the time they are needed it can give you a starting point. When you are looking for final expense insurance plans, these costs can give you an idea of where to start.

When considering final expense insurance plans it is important to carefully consider the coverage that will be needed. It is good to make sure that at least once a year you get a written statement detailing the status of your plan. As with any contract you should carefully examine the terms before signing. Some states have “free look” laws that allow you to examine a contract before having to decide whether or not to sign.

There is a thrilling new development for final expense insurance leads producers. It is a selling means that will help build client relationships, generate final expense leads, and could mean a substantial increase in FE leads production.

This remarkable tool is an increasingly popular end-of-life planning program, known as final arrangements planning. It is a practically effortless system that not only highlights to your customers the importance of pre-planning end-of-life arrangements and the need for final expense insurance, but also makes more efficient the process from start to finish.

An additional value is the convenience of online access, which gives clients the flexibility to adjust their plan at will, thus allotting producers the opportunity to up-sell the supplementary insurance needed to cover the costs of the modified plan.

Final arrangements planning not only assists in leads production, but the very structure and ease of the program itself increases policy persistence by allowing you to build a more solid connection with your customers as you get to know their personal preferences and needs. Starting a rock-hard customer relationship tends to instill loyalty in them. Loyal customers are inclined to be repeat clients and are more likely to provide referrals to someone they trust.

Final arrangements planning is a hard subject to tackle. After all, no one really wants to face the fact that one day, they are going to need the plan. However, prudent people also do not want to be caught empty at the time of need.

On the other hand, more to the point, they do not want their loved ones to be burdened with the emotional and monetary baggage that accompany a death when no plan is present.

Many people who have life insurance do not see a need to purchase additional final expense or burial insurance. This article discusses why it may be important to purchase additional insurance to cover your funeral expenses to avoid unnecessary fees and interest on unpaid balances after the funeral services have been completed.

It is first important to identify what is Final expense(burial) insurance versus traditional insurance. Burial insurance is purchased at a lower face amount compared to traditional life insurance. For instance, with a traditional plan a person may need to use the funds to pay off their debts, mortgages, and to maintain a certain life style for their spouse and or children. Final expense insurance is used to provide immediate funds for a person’s funeral usually $10,000-$15,000.

There is no medical exam with Burial Insurance. During the application process you have to answer a few medical questions and there is no underwriting. In certain states like Massachusetts there is a guaranteed issue of up to $5,000 coverage even if you are in poor health. Traditional insurance policies usually require a paramedical exam and underwriting prior to approving coverage. With Final Expense insurance you are usually issued policies within a week or two opposed to waiting sometimes over a month for approval with traditional insurance.

Unlike traditional insurance, Final expense funds are usually dispersed within 24 hours after the funeral service is provided. There is usually a lengthy waiting period to receive funds with traditional life insurance policies because the beneficiary has to provide death certificates and other required documentation to the insurance company. This can sometimes take months to settle your claim and receive the money to pay for services. As a result, you will incur unnecessary fees on outstanding balances after the funeral services have been performed. Many people usually expect to use their savings when to fund their funeral but do not realize that the last six months of their lives can be the most expensive time in their lives.

Unfortunately, at this time many people spend up their savings and do not have any money to contribute towards the funeral. This is where final expense life insurance can come in handy. A small policy usually $10,000-$15,000 can be made available to the family within 24 hours after the services have been performed. This will help ease the family’s financial burden at the time of grief.

Selling final expense insurance may be the easiest insurance sale for an agent. Traditional term, universal or whole life sales usually involve the following actions prior to collecting a commission.

- scheduling multiple client appointments
- preparing policy illustrations
- writing application
- submitting application to home office for underwriting
- scheduling medical exam
- requesting applicant’s medical records
- monitoring underwriting process
- delivering approved policy
- returning delivery requirement to home office

From the time of the first scheduled appointment until commissions are paid to the agent for a traditional policy, 6-10 weeks is not unusual.

The sales process for final expense insurance, however, usually involves fewer steps before a commission is paid.

- scheduling one-call close appointment
- writing application
- completing telephone field underwriting questionnaire
- submitting application to home office for policy issue
- delivering approved policy

With a shorter sales process, the agent is typically paid a commission within 2-3 weeks.

Incidentally, commissions are often larger selling these smaller face amount policies due to the fact that insurance premiums are higher at older ages. An agent can earn the same commission amount selling a $10,000 policy to a senior as compared to selling a $500,000 level term policy to a 30-year old.

Another compelling reason to sell final expense policies is that in most cases seniors are the ones buying them. And seniors typically keep their policies by consistently paying their premiums. Unlike younger policyholders, seniors take the purchase of life insurance more seriously knowing that these policies may be the last ones they will own.

Younger policyholders, on the other hand, may place policy premiums lower on their list of priorities when bill-paying time comes. A prematurely canceled policy, especially in the first year, requires the agent to return some of the commissions paid by the insurance company. This is known as a charge-back, which every agent wants to avoid.

From a strictly business stand-point, every agent would be wise to include selling final expense insurance in their revenue plan.

If you care for an aging person, or if you are a senior citizen yourself, then you have probably noticed ads for burial policies. These are also called financial expense insurance. The offers look attractive because they promote a way to take care of funeral expenses by making affordable monthly payments. If you have done any research on the price of funerals, you know that they average around $8,000, and can cost much more. Beyond just the burial expense, when somebody pass away, many family members have to travel on on little notice, and that can get expensive. The departed may have left some debts or other affairs to be settled, which is another thing to deal with. Nobody likes to think about the death of a loved one. However, this is a very stressful time, and a little prior planning can relieve a lot of pressure.

These types of policies are, simply, types of whole life insurance companies that have been designed to be easy to apply for. They have also been designed with older people, usually 50 – 80, in mind. Simplified issue policies ask few health questions, and most elderly people can qualify. Guaranteed issue means that no health questions will be asked. They use a waiting period instead of health questions to qualify applicants. With guaranteed issue, the insured person will have to survive a specified amount of time before the full death benefit can be paid out. Otherwise, the policy will refund premiums plus a specified interest rates. Since the face values are small, every effort is made to keep the premiums affordable.

If possible, look for simplified issue, because the premiums cost less and they payout with no waiting period. However, if the applicant is already very ill, or in a nursing home, then a guaranteed plan is still a no-lose deal. The beneficiary will still collect the premiums plus interest if the insured person passes away before the waiting period, and if not, they will get back the paid premiums plus interest.

Of course, you have other options to plan for final expenses. The money could be saved into a special account. Existing savings could also be placed into an account that is earmarked to pay for a funeral. This is a good option if the money is available because savings can earn interest! The problem is that many older people lived on fixed incomes with limited savings, and somehow, this money tends to get dipped into because of emergencies like medical bills and home repairs.

Funeral homes also sell a product called pre-need or pre-paid burial plans. These work for some people, but may tie you to one funeral home or company. In addition, they will only plan for the actual burial, and not other expenses like travel or debts. Sometimes, clients even have to pay interest on these accounts, and so they may end up costing more in the long run.

There are advantages and disadvantages to these methods, and if you are unsure what you should do, consult with a financial professional. Really, the best option depends upon the individual’s financial situation.