Final Expense Life Insurance Policies
Author: weissheiss
Final expense insurance is a great economical way to make sure that when the time comes, you won’t be a burden to your family.
Final expense insurance, is sometimes known as burial insurance or funeral insurance. It is a life insurance policy with a low face value, usually between $5,000.00 and $25,000.00. There are certain life insurance companies that specialize in these types of policies.
Most final expense policies are “whole life”. This policy will cover you for life. They are guaranteed renewable (as long as you pay the premium). The premium is also guaranteed. The price will remain constant for the life of the policy.
Most of these policies are “simplified issue” policies. This means that you are asked several medical questions, but you don’t have to take a medical exam. There is also usually a “phone interview” involved with most companies today.
If you have a medical condition that will prohibit your qualification (such as Diabetes), you may qualify for a “Graded” or “Modified” benefit. With this type of policy, the death benefit is phased in over time (usually two years).
There are some serious medical conditions that would prohibit you from obtaining even the modified benefit. In this case, you can get a “guaranteed issue” policy. These policies will be issued to anyone who applies (as long as you are within the age limits). These policies will be issued to anyone, as long as they are not diagnosed as “terminal”. The guarantee issue policies work like the “graded” policies, phasing in the death benefit over time. Of course, the guarantee issue policies are the most expensive, but are still a great alternative to no life insurance at all.
As with anything else, price can vary from company to company. Another thing that you need to be aware of, especially in today’s economy, is the financial strength of the company that you are dealing with. An “independent” insurance agent can be a big help in finding the right company and policy for you.
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