Why Seniors Should Consider Final Expense Insurance

Final Expense Insurance: It’s affordable and important for covering final costs

As we grow older, we come to realize the importance of being prepared for the future. We save for our retirement. We make sure we have medical coverage in case we fall ill. We make a last will and testament. We do these things because it helps us know that we have everything covered, and because it’s the right thing to do. But often people neglect to purchase a life insurance policy for themselves, even though doing so could lift a great financial burden from their family regarding final expenses.

There are many reasons people don’t purchase life insurance.
Perhaps they feel:
1) they can’t afford it,
2) they don’t want to spend on it, or
3) they’re in good health and don’t need it.
These may be valid considerations, especially if we were talking about large term or other life insurance coverage, but even then, it’s best to be covered if you have a family or beneficiary. (After all, life insurance is the only insurance policy you pay into knowing that someday it will be used, since we all pass away eventually.)

But there’s another type of life insurance that’s relatively inexpensive that everyone should consider. It’s called Final Expense insurance and its purpose is to provide just enough benefit so when you die the amount of benefit will cover your final burial costs and perhaps enough to cover the bills and debts you leave behind.

What is final expense insurance?

Final expense insurance, also called burial insurance, is a simple insurance policy intended to cover burial expenses, funeral services and final bills owed when the named insured dies. Such a policy helps ease the financial burden placed on a family when a loved one passes away.

The amount of coverage is usually between $2,500 and $100,000, and the beneficiary can use the proceeds however they wish. And because the amount of benefit is low, the monthly premiums you pay are also lower than other types of life insurance.

Features of a final expense insurance policy

• No medical exam required
• $2,500 – $100,000 in coverage
• Typically issued either immediately or within 48 hours
• Policies can often be opened over the phone or online
• Premiums will never increase
• Beneficiaries can use proceeds for any purpose

 

What is usually needed to apply?

• A phone interview with a final expense insurance agent
• A voice, or digital signature, along with payment information

 

What are typical pre-qualifying questions asked?

If you answer yes to any of the below questions you may not be able to secure a life policy.
It depends on the insuring company; some companies will insure more conditions than others.

Is the proposed insured:

• Currently in a hospital?

• Currently in a nursing home?

• Currently on hospice care?

• Been advised by a medical professional to have less than one year to live?

• Over 89 years of age?

• Tested and HIV positive, or diagnosed with AIDS?

• Diagnosed with Alzheimer’s disease, or dementia?

 

There are a great number of reputable insurance companies that offer final expense insurance, and each has their own criteria regarding who they will insure, the premium amount, the death benefit amount and so on. Be sure to shop around and find the policy that works best for you and your budget. You can start your research at: finalexpenseinsurance.com, or simply ask the insurance agent you’re already doing business with for home or car. They may be able to guide you. 

 

Alternatives for Seniors is a print and online directory that specifically caters to the housing and personal care concerns of senior citizens and their families since 1992. Call our Senior Specialists at (888) WE-ASSIST (888-932-7747) or visit the Alternatives for Seniors website to begin searching for the perfect home for you or your loved ones. Also, be sure to join our Facebook community and follow us on Twitter.

 

BLOG Date: Tuesday, July 22, 2014
Writer: Ryan Allen