Are you considering a final expense life insurance policy to cover you for end-of-life expenses? There are a variety of insurance companies that offer these types of coverage plans. The requirements for purchasing burial insurance may differ slightly between companies, but most use a similar set of criteria.
Like traditional life insurance, final expense insurance is offered in two primary types: guaranteed issue and simplified issue.
- Guaranteed issue final expense insurance is for almost anyone, regardless of health condition.
- Simplified issue final expense coverage is only provided to certain individuals who answer a health questionnaire. Certain illnesses may disqualify you from coverage.
Unlike traditional life insurance, you do not need to undergo a medical exam to get coverage for either type of final expense plan. Although simplified issue final expense insurance usually necessitates a health questionnaire, it is just a simple health form – not a comprehensive exam.
Some final expense insurance companies offer better coverage or lower premiums depending on the state of your health. For example, certain companies may lower your rate if you do not smoke or use tobacco. This is because you are considered “low risk” for certain health conditions.
If you have a terminal illness, you may have difficulty finding a policy. Final expense life insurance is designed to provide a minimal payout to cover your end-of-life expenses, like a funeral or burial. While it can be used to cover medical expenses, it is not designed to pay off large medical debts that often accompany terminal illnesses.
Most insurance companies have age limits for these types of plans. While these limits vary between companies, you typically can only purchase a policy between the ages of 50 and 85.
Ready to buy a final expense insurance policy? The best way to find a policy that works for you is to shop around with different life insurance companies. Not all life insurance policies are created the same, and not everyone will benefit from each type of plan. It’s important to explore your options to ensure you are covered when it matters most.
You can search online for final expense life insurance companies and compare the following details about each policy:
- Coverage types (guaranteed vs. simplified)
- Cost of premiums
- Death benefit amount
Once you find a burial insurance policy that fits your budget and preferences, you must name a beneficiary. This is the individual who will receive the death benefit and is responsible for ensuring all of your end-of-life wishes are met.
Most people name a family member, friend or loved one as a beneficiary. However, you may choose to name a specific funeral home as the beneficiary if you have already planned out the details of your arrangements.