Policies that do NOT require a medical exam however do require answers to medical questions. Furthermore, Simplified Issue policies in the strictest definition are also people in EXCELLENT health (sometimes called preferred or preferred plus). Policies will pay full benefits from day 1 (as opposed to graded/guaranteed)
Policies for people with minor health issues (i.e. Diabetes with A1C's below 7, heart attack > 2 years ago, etc.). They do not require medical exams but do require answers to medical questions. Graded policies are more expensive and will have reduced benefits (or no benefits) for the first two years.
Policies for people with major health issues. They do not require medical exams but do require answers to medical questions. Modified policies are more expensive then graded and will have reduced benefits (or no benefits) for the first two years. IF YOU GET A QUOTE FOR A MODIFIED POLICY, MAKE SURE TO READ THE FINE PRINT!
Guaranteed issue simply means NO MEDICAL EXAM and NO MEDICAL QUESTIONNAIRE (Simplified, Graded and Modified all require a medical questionnaire). Guaranteed issue just requires you to provide name, age and a few other pieces of contact info then you are automatically issued you a policy. Cost will be much higher and benefits much lower, however for anyone that is uninsurable, this is their only option.
The benefits of Final Expense Life Insurance is DEATH BENEFIT. Everything else is a feature! Final expense is WHOLE (PERMANENT) LIFE insurance for people over the age of 50, although a few companies have policies for ages 45+ (i.e. Mutual of Omaha Living Promise). Final expense whole life policies are also LOWER FACE VALUE (LOWER BENEFITS) designed to cover end-of-life expenses. Because these policies have lower benefits, final expense policies are designed to be affordable for any and all budgets. SUMMARY: Affordable and low cost final expense policies are available for EVERYONE!
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Like most life insurance policies, beneficiaries will receive a death benefit when someone passes. For a final expense insurance policy, the benefit amounts are generally lower and are designed to cover the funeral and burial expenses.
A person, however, might have outstanding debt or anticipate they will leave medical bills behind. In this case, they should plan for coverage amounts to pay off these debts. This should not be confused with long term care, i.e. while someone is still alive.
Coverage amounts range from $2,000-$5,000 (depending on carrier) up to $35,000-$100,00 (depending on carrier), although the higher the benefit payout the higher the premium. Upon passing, either accidental death, terminal illness or natural causes the beneficiary will receive the benefit, so that they can pay off of those remaining obligations. In most cases, beneficiaries are family members.
The average cremation is between $3,000-$5,000 while the media funeral costs between $8,000 and $10,000. Social Security offers a benefit, but right now that amount is only $255.
Funeral planning with burial insurance requires that you and your family careful consider all your final expenses, not just the funeral or cremation. Consider how you want to be remembered, where your final resting place should be, whether you wish to be buried or cremated and what type of casket or urn you prefer.
It is recommended that you have a conversation with a locally a licensed, funeral director about the cost of the services you require. A funeral director should be able to provide a list or schedule of costs. The value of your senior life insurance policy should cover the expense of the package you choose, plus any additional costs.
The most basic, economical option is generally an immediate burial plan. An immediate plan is a modest service at the graveside and a simple casket. The expense of a viewing is not included in most immediate burial policies. The costs of the plot, a headstone and flowers must be paid for separately and should be included in the estimate you give your insurance provider. An immediate plan may be purchased with either burial or cremation.
A traditional full-service option, including a viewing, a hearse, a formal ceremony and entombment, and cremation is more costly than an immediate or direct package and should be considered when evaluating burial insurance.
When you consider the costs of a package, you must take every extra expense into account in order for an accurate estimate of your financial needs. Your final expense insurance benefits can include the costs of preparatory tasks like washing, dressing, and embalming. A procession, limousines, flowers and a wake can also be included.
Although most mortuaries offer packages with a pre-determined set of services and products, you have the alternative to choose only the options that you want. The overall expense of the ceremony, casket, entombment, plot and other options will represent the value of your funeral insurance policy. When you’re buying life insurance, it’s important to have a fairly accurate estimate of the total coverage you need to avoid leaving your loved ones with these financial responsibilities.
The specific insurance rates will depend on your age, gender, health, smoking state and even such factors as driving record. Here is a handy link for general final expense rates for healthy people.
Securing final expense insurance is very simple. Many companies and carriers will accept an application over the phone or even online. You can apply for a simplified issue final expense policy, which requires that you complete a basic medical questionnaire and meet specific qualifications.
There are also guaranteed issued policies, which requires no health questions (and no health exam) and guarantees acceptance of your application. If you have a serious health condition, you may be required to purchase a policy with a graded death benefit, which provides life insurance coverage after the first few years of your participation.
NOTE: IT IS VERY EASY TO BE CONFUSED OR EVEN MISLED INTO PURCHASING A GUARANTEED ISSUE POLICY WHEN YOU ARE ELIGIBLE FOR SIMPLIFIED, GRADED OR EVEN MODIFIED. YOU WILL PAY MORE FOR GUARANTEED AND YOUR FAMILY WILL RECEIVE LESS BENEFIT.
There are five independent agencies that rate the financial strength of insurance companies based on letter grades of A-D. The better the grade the stronger financially the insurance company is. The factors usually take into consideration the creditworthiness and how that specific insurance company performs financially compared to other insurance companies. Most people look for companies that have “A” ratings. But not all “A” ratings are the same.
Some of the independent agencies have a different degree of “A” ratings adding an “A+” for their highest rating. On top of the grading, there are other factors you might want to consider like customer service, insurance costs and even some research into average length of time a company takes to pay it's claim (try a Google search, something like "how long does it take Mutual of Omaha to pay a life insurance claim.").
Cheapest Final Expense makes it easy to see your final expense options right away.