First of all what is “final expense insurance”?
Many agents today are offering final expense insurance to consumers to help them make sure they leave enough money behind for their family, heirs and beneficiaries when they pass on.
Children are often the motivators behind a parent being insured, and for very good reason. After all they don’t want to inherent any of the parents obligations and would want to have enough money available to handle funeral and burial or other end of life preparations. Traditionally, applying for life insurance has always had the applicant-insured go through a battery of medical questions and in most cases an insurance exam. While many people would look at this as a free medical, and in certain situations it was a blessing to have had the exam, overall people always wished they didn’t need to be examined, share detailed elaborate medical information with an agent and wished the process would be much faster and easier.
The Final Expense market was created to solve these problems and make the purchase easier and accessible to many more people needing important insurance protection. Carriers have now streamlined underwriting using “intelligent underwriting” where they can now rely upon fast information gathering from multiple underwriting tools and create approvals without needing to see an exam. They re-packaged the policies to meet the needs of lower to mid-income individuals and created web-based applications that allow the individual to apply with limited agent involvement.
The products themselves most always are similar to insurance policies of the past such as whole life insurance that provide a benefit for the life of the insured. Some may have a cash accumulation as well as death benefit and some provide “guaranteed issue” to those that cannot normally be accepted due to medical conditions that are more riskier for the insurer and cannot be purchased through another carrier. There are “graded policies” that may limit the face amount paid upon death to a percentage of the amount during the first 2-4 years and there are other “modified benefit” policies that will return an insured’s premium plus interest if they die within the first 2 years, after that time the full face amount is paid upon death.
The people that are served best to purchase final expense are those lower to middle income individuals that want up to $50,000 set aside for their loved ones and wish to leave a remainder to their family as well. The best ages to begin looking into this coverage are age 50 +. People especially helped are those with medical conditions (diabetes, cancer, neuropathy, heart issues, etc) that would not be able to get coverage elsewhere. While not taking an exam is helpful, what people need to know is that in exchange for “easy acceptance” there’s a chance you would pay more in exchange of liberal underwriting to get a policy. The increased difference is comparatively small.
If you think you are underinsured or want to obtain up to $50,000 without the hassles of a medical exam and want the money guaranteed to be there through the best policy type, lasting until age 100 or beyond then Final Expense coverage is the way to go.
For more information, get a quote or begin the easy application process call me at 561-459-0222 or reply for more information here.