After a certain point in time, we all feel like we are getting older too fast. It seems like time has really spread its wings to fly. Saving for retirement becomes a pressing issue. If you are already retired, stretching those savings is even more pressing.
While most retirees are cutting costs just to get by, the idea of not having enough for final expense is dreadful in the majority of cases. The cost of a typical funeral varies according to state, city and even neighborhood, but it is always a huge expense for the family to take care of if no pre-arrangements are made.
Most people in this situation find a big relief when they buy final expense insurance. It is easy to get as it takes about 15 minutes to be approved for immediate coverage. It is also easy for the family to receive the tax-free funds. In fact, it creates an immediate estate of let’s say $10,000. It is almost like having $10,000 in the bank, while paying a small fraction of that every month.
Is final expense insurance right for you?
If you don’t have all your final expense paid up already, you need final expense insurance. You may think that you have enough saved, but remember that this is your retirement and emergency fund.
If you are suffering from a severe health condition, you can get 100% approval with a guaranteed issue whole life insurance that asks no questions, but kicks in after 2 to 3 years. However, just by asking a few questions a field underwriter (the expert) may get you 30% on the first year, 70% on the second year and 100% beyond that. In fact, most of the people are approved for 100% first day coverage with common conditions like diabetes, high blood pressure, high cholesterol, and even cancer, stroke or open-heart surgeries (over 2 years ago).
• Always try to buy insurance as early as possible. It will cost you less.
• Non-medical exam policies should be the norm as they are easy to get approved and easy for your family to get paid.
• Final expense insurance should not be a large policy. Most range from $10,000 to $20,000 and the max is $35,000. You can get multiple though.
• Don’t assume on your own that it will be too expensive.
• Don’t assume that you are too old as even at 90 years old you can get final expense insurance.
• Never ignore your health or lie about it while buying your policy as the carriers have access to your medication and health record.
How is the process today?
In the past you’d know reputable insurance company, or someone you trust would refer one. Nowadays, virtually all great insurance companies sell through agencies. Agencies have access to a variety of carriers. The field underwriter from the agency knows which companies are best for you based on your medications, and a few health questions, as the companies look at your health record in different ways.
You will probably be browsing the internet or on Facebook on your computer or smart phone and an AD from an agency will pop up. The AD pops up for you because of your age and/or you looked into insurance, or funeral, cremation, or some other related information. You fill out a form with basic information, and they contact you.
Make sure to check that they are licensed in your state, check their website, business card, etc. Every state has a department of insurance, and the field underwriters have to pass an exam and background checks. Additionally, the insurance companies have their own back ground checks. The department of insurance also provides a way to check each agents and company record. Specially, if they have done something wrong in the past.
It is actually easy to get the peace of mind of a final expense insurance. You can get it on a phone call in less than an hour. Additionally, you may have 10 to 30 days free-look period (depending on your age and US state), that allows you to read the policy in it’s entirety, and if you don’t like anything you can cancel and be refunded 100%.