Final Expense Life Insurance

When it comes to the type of life insurance coverage used to guarantee that your Final Wishes don't become a financial burden saddled on the loved ones, Whole Life Insurance is always going to have the greatest value. Simplified Issue Whole Life Final Expense Insurance Aka Burial Insurance, Aka Funeral Plan, Aka Cremation Policy, is offered through approximately 35 different life insurance companies. Regardless of the title, it is all final expense insurance. 

Whole life Final Expense plans are usually available from $5,000 up to $40,000 and the underwriting requirements generally include a list of (yes or no) health questions for an applicant to answer (to the best of their knowledge), often followed by a prescription history check. In order to qualify for a whole life final expense plan that provides coverage in the amount of the full death benefit from the very first day (or 1st payment), all health questions need to be answered "No", and the applicant should not have been prescribed medications for circulation, heart, lungs, kidney, liver, organic brain disease, or cancer, among other major health conditions. At least not inside the time frame in which the company is looking back. On the other hand, almost anyone can qualify for what is referred to as a "guaranteed issue" or a "modified" whole life policy. This is a plan which includes a 2-year modified benefit period. If death occurs within the first two years, the company will pay the premiums paid in plus an additional amount between 5% and 20% (depending on the company's plan). For example, if someone has paid $1,000 in premium over the course of 12 months and passes away, the named beneficiary will receive $1,100 if the policy has a 110% return of premium. Whole life final expense plans that are obtained directly through mail and/or through a TV advertisement commonly provide a two-year modified benefit period for all applicants unless otherwise stated, and it is always important to double-check with a company's customer service department. Plus, a follow-up call can give a good idea of how easy (or difficult) it may be to get in touch with a live representative. If the company does not ask a list of health questions or only has 2 or 3 questions to check the boxes, it's safe to assume it comes with a waiting period. Most final expense companies offer both "Day One full death benefit coverage", as well as a plan with a "2-year modified benefit". If someone is in good health, it may be in their best interest to seek out a plan that covers the full benefit from the very first day. The premiums (for Day 1 full benefit) are often less than the premiums for a 2-year modified benefit plan. Final expense plans are typically marketed to those whose ages are between 50 and 85. However as an agent, I represent a company that offers final expense plans for anyone 0 - 85 years old, plus we have no minimum coverage amount.  

There are very few companies who market their term life product to be used as final expense coverage, but they're out there. I personally believe it should be illegal because as I mentioned in my previous post, term policies are only sold to those who qualify based on good health in which the company believes that the insured will likely outlive the term. It is always important to know exactly how your life insurance policy works.

Rates are determined at the time of application based on the proposed insured age, gender, health, and often whether or not they use tobacco. A unit of coverage is $1,000. The premium payment is calculated using the Rate multiplied by the number of units desired. (If the Rate is $4.05 per unit, and the applicant needs a $10,000 policy, the monthly (premium) payment is $40.50 (plus any policy fee and or available riders) 

Ohio Final Expenses