Final expense insurance policies come with a range of benefits. Besides relieving your family from the burden of meeting final expenses and funeral costs, the policy also protects against rising inflation rates and funeral costs. The average cost of organizing a funeral in American could is around $8000. Hence the coverage limit of final expense insurance policies is usually lower than $25000.
Insurance expert Gary P. Cubeta from Insurance for Final Expenses believes that an individual's medical condition has a significant impact on the final expense quotes offered by the insurance provider.
How Final Expense Insurance Works
Final expense insurance policies are usually designed for people who are older than 45. Unlike life insurance policies, they cover only the final expenses of the insured individual and have lower coverage bands.
Most insurance providers don't insist on strict medical examinations or detailed medical check-ups as part of the final insurance application process. However, the insurance company may pose fundamental questions about the health and lifestyle of the applicant and the existence of pre-existing medical conditions.
The yearly cost of final expense insurance may seem higher than that of life insurance policies since these policies don't have extensive coverage periods. The applicant submits an application for final insurance with the company.
The policy is expected to cover funeral costs and other final expenses like final medical bills and final legal expenses. In the instance of the insured person's demise, the person's family receives the coverage amount as insurance benefits. The beneficiaries can use the money to meet any final expense they deem fit.
The cost of the policy may vary based on several conditions like the health age and gender of the person and the insurance company's policies. Final expense policies for older persons and seniors generally come at a higher cost. Experts assert that people who decide to buy final expense insurance must do it earliest to avoid higher final expense quotes.
How Medical Conditions Affect Final Expense Insurance Quotes
Most companies add "no medical examination" to final expense insurance advertisements. However, insurance companies consider the medical conditions of the applicant. If the person has a condition that is likely to bring about his/her death in less than two years, the company may reject the application. The severity of the condition can impact the final expense quote significantly.
They may also insist on essential medical examinations if the company has reason to suspect the health status mentioned in the application. However, the presence of a pre-existing health condition will not lead to rejection unless the condition is fatal and can cause the person to die in less than two years.
There are particular final expense policies formulated for people with fatal conditions. These policies mainly cover the funeral costs and final medical expenses of the individual. While they come at higher premiums, they typically require no medical examinations and are processed within 24 hours.
Even people with fatal conditions like final stage cancer and traumatic brain injuries can be offered coverage. However, the applicant may have to pay higher final expense quotes for the policy since the insurance company faces considerable risk. If the applicant is over 80 years old, they may only be allowed coverage under specific insurance packages. It is easy to infer that a person older than 80 who also has a pre-existing medical condition will have to pay a considerably high premium.
Why get Final Expense Insurance
Several insurance companies offer affordable plans for people who want final expense insurance coverage. These policies come at stable insurance premiums and are a kind of life insurance policy. They come with several benefits like stable premiums, lower insurance terms, essential coverage for funeral costs and other final costs, and improved financial stability.
The policies have a smaller payout than life insurance plans, but the insurance company pays a lump sum amount to the insured's family in the event of their demise.
The key benefit of final expense insurance policies is that the beneficiaries can use the payout for any relevant purposes. They may use it to meet attorney fees or even pay off debts and mortgages.
Work with Consultant
Insurance consultants and experts can help you find the best policies in the market. The right policy for you would depend on your health condition and your requirements. Working with a market expert will also help minimize the possibility of falling prey to marketing scams.