Seniors Final Expense Planning
Author: weissheiss
What Are Final Expenses?
Nobody likes to think about having a loved one pass away. But when it does happen, and the family has not planned for it, the poor family can have a lot of stress to deal with. In the US, funerals can average $8,000 – $10,000 or more. In addition, their may be other costs, called final expenses, like travel, transportation of the body, and even settling debts like medical bills. Most families would have a hard time writing a check for this amount of money.
How To Plan For Funerals
But if you worry about needing to come up with this money, you are not alone. And products called final expense insurance or burial policies have been popular in the market thse days. These are actually smaller face value whole life insurance policies. They have face values that range from a couple thousand dollars to several thousand dollars. And because of the smaller face value, compared to other life insurance policies, they have been designed to be easy for older people to obtain.
Here are some advantages of burial insurance policies:
They should be easy for most seniors to apply for, and to qualify for. The premium can be paid by the applicant, or by a family member. The smaller face value should keep the premiums affordable for most families. The beneficiariy is usually a close family member, and they will get paid cash. Thye can use this money to make final arrangements at any funeral home they choose, and they may keep any money that is left over. A burial policy from a top insurer should be well known by quality funeral homes, and they will often accept proof of insurance instead of cash payments. The money can pay for many expenses that are associated with the end of life, and this includes funerals, travel, transportation of a body, and debt payoffs. It is not just targetted at paying off a funeral home, but can be used the way the beneficiary needs to use it.
Who buys Senior Life Insurance?
Sometimes the elderly person will take out a policy for themselves, and sometimes a family member, like a grown child, will own the policy. It is not an act of greed, but one of financial planning. Most seniors are willing to accept this because they do want their children or grandchildren to have a financial burden heaped upon them when they pass away. In face, many seniors are proud that they have helped take care of this issue, and it takes some stress off of them.
What are the Types of Final Expense Policies?
These policies usually come in 2 main kinds, though the details vary by company.
A simplified issue policy only asks a few health questions, and is designed to accept most people in reasonably good health. It usually only excludes those with a terminal illness or who need nursing home care. The good thing about simplified issue policies is that they have an immediate death benefit with no waiting periods, and the premiums are more affordable.
Guaranteed issue policies, on the other hand, will have a waiting period instead of health questions. That way, almost every senior can be accepted. But if the insured person dies before the period ends, the family may not be entitled to the whole face value. Instead they may get the premiums returned, with interest, or they may get some percentage of the face value. You must look at the individual policy for details.
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