The last thing any of you want to be worrying about in your final days is the burden of leaving your final expenses on your family. In response, the insurance industry has burial and final expense insurance to shoulder your end-of-the-life financial tensions. Let’s see how to find the optimum coverage for a final expense policy.
What is the Final Expense Insurance Policy?
An insurance policy prepared to cover all the bills that your family members need to face after your death comes under this ambit. Here, the charges that the policy covers for you are funeral expenses and medical bills. The final expense insurance is life insurance for seniors, usually 55 years and above. Various companies may have higher or lower age limits.
Once you explore multiple options, you can choose a suitable option like John Hancock final expense.
How Does This Policy Work?
Just like any other type of insurance policy, there are premiums that you need to pay. You can pay premiums weekly, monthly, annually, or even in one lump sum. These premiums offer you coverage for your final expense insurance. And after your passing, a death benefit will be paid to your beneficiary.
Many final expense insurance policies never need a medical exam but have just a few questions about age, smoking, and serious health conditions.
Understand the Different Types of Final Expense Insurance
Funeral insurance is a wide term that includes several different types of plans and policies. Though some of these insurance plans can be called funeral insurance, it is more common to hear the name final expense insurance policy or burial insurance.
Under this umbrella, there are even different kinds of plans that are not officially insurance policies, but they are prepaid funeral plans. It is good to know about the types so that you can choose the optimum coverage for final expense insurance.
Independent agents like Gary Cubeta from Insurance for Final Expense see first-hand how the right insurance such as John Hancock final expense may affect people daily. If in doubt, you can talk to professionals to offer you a wealth of knowledge about the different policies and their benefits.
When you apply for an insurance policy for final expenses, you have two general options: Simplified Issue or Guaranteed Issue policies. To know the difference is crucial, mainly if you have worries about your medical history.
- In a simplified Issue policy, the insurance company examines or underwrites your health by asking you a series of questions about your medical history. Most probably, you do not need to undergo any medical test.
- However, with guaranteed issue policies, the insurers accept nearly everyone regardless of medical history. You do not even require answering any health questions to apply. But the only thing is that the cost may be higher than other insurance policies.
Estimate Your Final Expenses
You must figure out how much you will need to cover your end-of-life expenses so that you can pick an optimum coverage. The expense of your funeral is the main thing that comes to mind, and it is mostly the highest single cost. But there are other final costs to consider, such as legal costs, remaining medical bills, living expenses, credit card bills, etc.
To sum up, since you now know much about final expense insurance policies and how these policies work, you can make a sensible move. Additionally, make sure that you take the policy from a reliable and licensed insurance agent or company.