Final expense insurance policies are one of the best ways to ensure that your final and burial expenses are taken care of. Funeral costs have seen a steep rise in the US over the past decade. Insurance experts like Gary P. Cubeta from Insurance for Final Expense assert that it is essential to define your funeral and other final requirements before choosing a final expense insurance policy.
You will need an insurance plan, Your coverage requirements would depend on several factors like the type of funeral you want, the number of guests you want your family to invite and the type of casket or urn used. There are a few things that must be considered before choosing a final expense insurance policy.
Estimate Your Requirements
The cost of a funeral would depend on the facilities and amenities a person plans to avail of for the funeral. An elaborate funeral is bound to cost more than a simple one. It is also essential to consider other final expenses your family may have to incur on your demise. If you need legal services from an attorney for will and property division needs, the lawyer will charge a fee.
Additionally, any debts or liabilities you leave behind will also become the responsibility of your loved ones. You may use the services of professionals like Gary P. Cubeta of Insurance for Final Expense to estimate the cost of your final expense insurance policy.
Understand the Types of Policies and Coverage Offered
The coverage provided by final expenses policies may range anywhere between $5000 and $50000. However, final expense coverage does not typically exceed $20000. There are several types of final expense insurance policies you can choose from. Final insurance policies are similar to life insurance policies.
On the policy holder’s demise, the coverage amount is paid to the beneficiaries of the insured. The beneficiaries may use this amount to meet funeral expenses or any other final expenses following the insured’s death.
Since the average final expense requirements (including funeral costs) of an average American is expected to be around $10000, it would be wise to choose a policy that offers coverage of at least $10000.
Find Out the Cost of the Policy
The cost of final expense insurance is generally around $70 per month. However, according to insurance expert Gary P. Cubeta from Insurance for Final Expense, the price of final expense insurance policies vary based on the applicant’s age, gender, and health conditions.
The older the applicant, the higher will be the price of the policy. If you plan to buy final expense insurance for yourself or your parents, it’s best to do it at the earliest. The cost would also depend on the lifestyle and health status of the individual. If you have a pre-existing health condition, you may have to pay a higher premium.
Check Your Eligibility for Final Expense Insurance
While final expense insurance policies help shift a considerable burden off your loved one’s shoulders, not everyone is eligible for coverage. Persons with pre-existing conditions may not be eligible for specific policies.
If the applicant has a health condition/ailment that could cause them to die in two years, such a person may not be eligible for standard final expense insurance policies. You may want to check your eligibility before applying for final expense insurance. They are designed for people who are older than 50. Super seniors who are older than 80 may only be allowed to apply for specific policies.
The Reputation of the Company
Insurance policies have a significant impact on your monthly financial spending and savings. You trust your insurance provider with a significant amount of money over a while. Entrusting your final expense coverage needs to an insurance company that is not reliable could become a huge mistake.
Choose a company that has a good reputation and goodwill in the market. You could base your decision on referrals or reviews. This will help you understand if the policy you’ve shortlisted is ideal for you.
Understand the Policy Terms
You may need guidance from your insurance agent or consultants to understand the terms and conditions attached to your final expense policy. Some companies may load the agreement with clauses and conditions that are entirely irrelevant to your case.
Ensure that the terms of the policy suit your needs and requirements. You may also want to avoid paying for conditions you think are useless. Several reputed insurers allow applicants to customise their policies to a specific level.
Final Word
Final expense insurance policies are easier to qualify for when compared to life insurance policies. While all final expense policies are designed to help families deal with funeral costs and other death-related costs, not all policies offer the same coverage. Working with an expert insurance consultant will help ensure you choose the right policy.
