About Final Expense Policies

Have you seen ads for senior life or final expense insurance on TV? Is this a product you have considered buying?

If you are a senior citizen, or if you have parents who are in their retirement years, you may have noted the expense of funerals today. The price of a very moderate funeral averages around $7,500, and can cost twice as much or more! If you do not have that much cash waiting around for an emergency like a funeral, then you may want to start thinking about how you are going to pay for a funeral expenses. You may also have to worry about some debts. Other expenses include travel or transportation for the body.

While the thousands of dollars that a funeral can costs, seems like a lot of money, it is rather small in the realm of life insurance benefits. That is why funeral policies are a very affordable form of life insurance, even for older people and those with health conditions! And even though the face values seem small, it is enough money to pay for burial and other expenses. A final expense life insurance policy is a smart way to buy exactly what you need.

Sometimes these can work out well.

Final expense policies are small face value whole life policies. The normal range is from a few thousand dollars to about twenty-five thousand dollars. You may also find face values up to fifty thousand dollars! As the face value goes up, the premium will get higher too though. The premiums should be guaranteed forever. Furthermore, there will not be an end of coverage like there is with term life insurance. They cover you when you need coverage the most! Many seniors can find a premium that will work withing a tight budget.

Different insurance companies have come up with policies to meet the needs of different individuals. Some policies, called simplified issue, will offer an immediate death benefit. As soon as the policy is in force, the insured person is covered for the full amount. These plans are made for older people. However, they would have to be in reasonably good health for their age. For people of any age with health conditions that would get them declined for most life insurance, guaranteed issue life insurance policies are the answer!

In the case of "guaranteed issue" policies, there will be a waiting period clause. This is used instead of a heath application. If the insured person survives the waiting period, their beneficiaries will inherit the entire face value. If they should pass away, their premiums will be refunded to the beneficiaries with a stated interest rate. For a person who cannot qualify for other life insurance, these type of policies are good alternatives.

Would you, or your family, benefit from a final expense insurance policy?

You have to consider a lot of things. How hard would it be for family members to come up with several thousand dollars for a funeral and other expenses. You should look at all of your alternatives, which would include finding out how much the premiums would be for the individual you want to cover. Then you can make the best choice for your family.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com