Final expense insurance exists to ease the financial burden once a loved one dies. The top final expense insurance companies have a bevy of policies on offer while not lightening your pocket too much in the process. These insurances can cover the cost of the funeral and more.
Burying the Doubts about Buying Burial Insurance
The best final expense insurance companies have many terms and conditions about issuing their policies. Experts like Gary P. Cubeta have created platforms like https://insuranceforfinalexpense.com/ intending to demystify everything regarding buying final expense insurance. Guides like this one can answer your questions about buying funeral insurance.
What Is Final Expense Insurance and Do I Need It?
Final expense/funeral/burial insurance is a policy that primarily covers the expenses related to the insured’s funeral. It is a whole life policy providing lifetime coverage and low coverage amounts than other types, but it doesn’t expire. It has low premiums that don’t increase.
There are variations depending on the provider and plan. These policies are typically meant for ages 50 and above, though some might start sooner. They are mainly aimed at poor people with certain health conditions but not restricted to that category.
How Else Can I Pay For A Funeral?
It is an agreement where a trustee is named for a certain amount set aside for your funeral. The person can withdraw from the account to pay for your funeral expenses post your death.
· Payable on Death (POD) Account:
Also called Totten trust, it allows you to put money away to be accessed only after your death by a person you’ve authorized. You can access and alter the amount anytime. It prevents probate from tying up your funeral money.
A trust owns your life insurance, and a nominated trustee will use that money once you’ve passed away according to the conditions laid down by you.
· Savings Account:
It is a regular account that can hold your money but with probate. It can be avoided with a joint beneficiary to the account, but they will have full access to that money.
Social Security helps based on the situation. $255 will be paid to your surviving spouse living with you. If not living together, they can get some benefits based on your record, or your children can.
Veteran benefits, crowdfunding, State and federal emergency funds, personal loans, and compensation benefits are other ways of getting funds. Comparatively, top final expense insurance companies remove many hassles and confusion while guaranteeing payments.
What Types Of Plans Are There?
· Simple Issue:
It gives you the plan with guaranteed returns and premiums. It doesn’t have wait periods. However, the medical history screening process is very strict, and you will be disqualified if you answer yes to any conditions mentioned in their checklist.
· Graded Issue:
It, too, guarantees qualification and is more lenient with medical background checks. However, it has a typical 2-year wait period where you won’t be covered for the entire amount. Upon death during it, a partial payment will be made based on the time of death from the issue.
You select the funeral home and the ways your funeral will be conducted. You then buy insurance for the cost of that funeral pick, and upon death, the funeral home gets the money to conduct the procedures. The amount is locked-in.
What Are The Associated Costs And Conditions?
For a 50-yr old healthy male, funeral insurance starts at $46/month without medical questions and exams, for coverage of $10,000. The same person would pay $41/month for $100,000 coverage for 30 years with a medical exam under term insurance. With High BP and mandatory medical exams, that person pays $44/month under the same term policy. While funeral insurance can be costly, the coverage doesn’t expire like in term insurance.
While the benefits and drawbacks of policies can vary, some common ones are:
· Guaranteed Acceptance:
You will be issued a policy without a medical exam. You must answer only a medical questionnaire about your medical history and present situation.
· Fixed Premiums and Coverage:
Once fixed at the start, your premiums and the coverage amount won’t ever change.
· Waiting Period:
Graded plans have this condition, where you pay without getting the policy’s coverage benefits until the period is over. If you die within this period, your beneficiaries will only get a partial sum based on duration from the date of issue. The typical period is two years.
· Health Conditions:
While terms may vary by policy, provider, and more such factors, all funeral plans have a medical history checklist that needs verification. Some providers and policies insist on a “NO” for all of the listed conditions present in you, while others are more lenient.
Pretty much every condition is accounted for in the checklist, including surgeries, transplants, habits, etc. Chronic conditions get the most scrutiny.
The final moments of a loved one can be very hard, but a policy from the top final expense insurance companies can leave you with something to take away in the end.
Article Submitted By Community Writer