Though you will be trying to put away the thought every time, there will come a day when you have to think about how you will manage to pay for you or your loved one’s final expenses.
One simple way to manage that is by getting final expense insurance policies. Companies like Insurance for Final Expense provide different types of final expense policies, a suitable income replacement when you are no longer in your family’s life to provide for them.
According to the CPI, Consumer Price Index, funeral costs have shot up by 227.1% in the last 25 years alone. The funeral cost can be ranging from $8000 to $10,000 easily excluding medical bills. And the only way to face such expenses is by signing up for final expense insurance policies.
Here is a step by step guide to apply for the final expense insurance.
How to Register?
Just like every other life insurance policy, the process starts with you filling out an application. Based on the life insurance company, the application you have to fill can be one or two pages long, or it can also be five to ten pages long.
Applications that are longer will ask more questions, such as the applicant’s blood type, weight, height, level of activity, and family history. Such companies usually will also ask for a medical exam with urine and blood analysis.
But for example, if you see final insurance companies like Insurance for Final Expense and such, they guarantee instant quotes and instant approvals within thirty minutes into the process.
The coverage is wholly based on the applicant’s answers and response to the health questions and not the medical tests. When you apply for the coverage, you can also call or fill the application form online and receive a free quote. Either the insurer or one of the licensed representatives will provide you the quote.
According to insurance experts like “Gary P. Cubeta” from “Insurance for final expenses”, the coverage can also be sold over the phone, but most of the final expense policies will indeed require some type of face-to-face interaction.
Examples of Pre-Qualifying Questions
Here are some examples of questions that will be asked in the application:
- Are you bedridden, hospitalized, or living in a care facility or hospice currently?
- Do you have any heart diseases, including heart surgery or heart attack?
- Do you have any form of cancer?
- Do you have dementia or Alzheimer’s?
- Have you ever had alcohol or drug abuse?
The biggest advantage when it comes to final expense insurance provided by companies like Insurance for Final Expense is, even if your answer to any of these questions is yes, you will still be qualified for the coverage.
Plan Your Benefit Levels
Most of the final expense policy amounts are usually under $50,000. But, $10,000 – $20,000 is the average policy amount that is taken. Based on your health and what you want to protect, the benefit amount will vary highly. A modified plan will give you a lesser coverage amount compared to traditional policy.
Such modified plans are given to applicants with high health risks and have a waiting period of two to three years.
Keep Reviewing Your Coverage
Every day funeral costs are rising, and your health can take a wrong turn any time you get older. And life insurance is not a purchase that you make just one-time. You must often review the coverage to ensure that you have enough to protect the other family members.
Choose the Beneficiaries
When it comes to life insurance beneficiaries, there are three different types.
- Contingent/ Secondary
The primary beneficiary gets the full death benefit when the insured person dies. Once the primary passes, the secondary beneficiary will receive the benefits. The tertiary beneficiaries are usually the last choice when the primary and secondary passes before the insured person.
You can also split the benefit among multiple contingent and primary beneficiaries. Designate the right percentage each beneficiary should receive and verify the information once the policy is issued.
Where to Buy The Insurance
Most of the final expense insurance policies are bought through licensed insurance agents. The type of agents includes Independent agents, Captive or Exclusive agents, and Direct-writing Agents.
Independent agents like Insurance for Final Expense sell policies of different insurance companies, and they can offer you various options. Exclusive or captive agents will represent a single company and will possess good experience in the field.
Policies are also sometimes sold directly by the insurance company through ads or emails and on the internet. These are direct response sales.
Shop around for some time to find the right insurance company before you commit to a final expense policy. Every insurance company is different and has different coverage types and premiums. So, choose the one that suits you best, and the one that you think will give the best for your family.