WEDNESDAY, JUNE 3, 2020
For those on a fixed income, you may be concerned about how to get a good senior final expense life insurance policy. You may have heard rumors about getting stuck with a policy that runs out after a certain time period, leaving you with no insurance protection in the later years. You also might have had friends tell you about plans with premium payments that increase over time, that end up costing them a fortune. None of this is mere rumor but are based on actual types of policies that do exist.
If these are your concerns, first understand you are not alone, and there are ways to avoid this. The intent of this article is to give you some solid guidelines, so that you can get coverage that is both affordable and lasting.
Living on a fixed income has its own set of challenges. With any financial circumstance, especially when your income is locked in on a month-to-month basis, you must develop a plan. This will help you identify exactly what you routinely spend money on and will then help you understand what you can commit each month for added expenses, such as a final expense insurance policy.
Every situation is unique, and in order to make the best decision, you need to first understand yours. If you can stick to your plan you will not go beyond your budget, which will enable you to get your needs met affordably.
The best place to start for this discussion is the cost. The good news is most final expense plans costs an average of $50 per month. Since they can be designed for the premiums to never go up, and the benefits to never go down, this will be a predictable cost each month. Knowing what you will pay each month makes fitting the cost into your budget easier.
If premiums are paid, these plans typically are guaranteed to last until age 100, and most now go until age 121. This means the coverage will be there when you need it to be.
Some important questions to ask - Planning
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After considering your main household expenses, what is left over?
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Of that amount, how much can you commit to paying for final expense insurance?
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How much coverage will you need?
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What final expenses do you need your plan to cover?
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Do you want to leave a little extra to loved ones?
Basic costs for a standard funeral are:
What is added to this list will often be different for each person, based on your preferences. There are many options available beyond what the basic costs that are listed above. Each addition will increase the cost and is best if planned in advance. These costs are based on the U.S. national average as of 2019, and may be higher or lower, depending on where you live.
Final Expense/Burial Insurance - Planning Best Practices
The key to getting the right policy is to do some planning beforehand. It may be helpful to include a trusted person in the progress; someone that knows you well, and you trust. This is important, by including them, there will be at least one other person that understands what your wishes are and can make sure your wishes are honored.
While the plan, and should be done with an attorney as part of your will preparation, it would still be important to let the person you trust know pertinent details, where you keep the document, or give them a copy.
In any case, you will have to decide what will be in your plan. In the beginning this can seem challenging, but once you’ve outlined your needs and preferences, you will most likely only have to revisit it in the future should you want to make a small change. You might want to think of the following as you plan:
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Is it your preference to have a standard funeral or a cremation?
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Do you have a cemetery in mind, or do you want to make some other arrangement?
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Will you hold a wake, viewing or some other type of gathering in addition to the standard ceremony?
In general, once you have developed your plan, you can then move on with the many other activities that enrich your life. Knowing that you’ve taken care of something that is this important will allow you to be released from the worry, now knowing it is done. And please, make sure your plan is kept in a place that is both safe and memorable. The main key behind any plan is to know that it is properly funded, which is the main purpose of having a senior final expense policy.
What is Final Expense/Burial Insurance?
These are specially designed whole life insurance policies. There are key details and benefits that do vary from one insurance carrier to another, as well as the State where the policy issued. In general, Final Expense insurance comes with the following specifications:
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These plans are specifically designed for the senior market, considering that many who apply will have either high blood pressure or cholesterol. Most carriers provide other avenues for those with more serious impairments to get coverage as well, making acceptance far less complicated and much easier than it would be for a standard life insurance policy.
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If premiums are paid, the coverage will last for a lifetime.
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There are no medical exams.
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Many can be designed with various options, such as terminal illness riders, which can often be added at no additional cost. This can allow you to take money out of the policy up to a year following a terminal diagnosis, in order to start getting your affairs in order in a timely fashion.
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These policy applications are generally much shorter than standard insurance, which eases the process of applying for the senior.
Types of Final Expense/Burial Insurance policies
Insurance companies name their products differently, according to their selection of services and offerings.
In general, there are 2 main types of Final Expense/Burial policies
As the name suggests, this type is guaranteed acceptance. There are no medical questions to answer. Because they are approved this way by the Insurance company, they generally come with the most restrictions, such as a 2-year waiting period to get the full death benefit paid.
Some medical questions will be asked to those that are reasonably healthy. The benefit here is that these policies are less restrictive, and many in this category do not come with a waiting period.
If you are considering Senior Final Expense Insurance, know that you have a partner that you can speak to, and work according to your needs and planning. By working with a knowledgeable and caring, no-fee-for-service agent which is available to you at Community Assurity Group, together we can find a solution that fits nicely into your budget, as well as getting a plan that takes care of your final expense needs. More importantly, you’ll get a plan that will not run out, and will pay benefits whenever you and your family need them.
We hope you’ve found this information helpful.
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