Final Expense Video
Final Expense Plan is an insurance policy that helps cover medical bills and funeral expenses facing a family after a loved one’s death. There are three main types of Final Expense policies:
We specialize in backing into the best possible plan based on your client’s health concerns, price range, and getting your client placed inforce.
We have nearly 20 Simplified Issue products, each to fit a wide range of medical conditions.
1. Single-pay funeral trust plan: For people who choose to put a lump sum into their plan.
2. Simplified-issue level and graded plan: For people who want to pay over time (this is the most popular type of policy).
3. Guaranteed-issue plan: For people whose health issues disqualify them for coverage with a simplified issue plan; this type of policy has a much lower coverage cap.
What is Final Expense Insurance
Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses at death. A final expense policy is also known as burial or funeral insurance and is popular with seniors. Most final expense plans have these features:
- Whole life insurance – no expiration if premiums are paid
- Cash value – insured may be able to take out a policy loan
- Fixed premiums as long as they are paid
- Simplified issue – usually no medical exam is required, just health questions on the application
- Easy application process
- Fast approvals – coverage can often be issued in days
- Affordable rates
What does final expense insurance cost?
How Much Does Final Expense Insurance Cost? The average final expense policy costs between $ 25 -$70 a month and depends on age, sex, health, amount of coverage, and the life insurance company chosen. Quote Link Here
Or contact Jarad@diversifiedins.com or jason@diversifiedins.com
Why is there a waiting period for funeral insurance?
Since the insurance companies know nothing about an applicant’s health, they must institute a 24 month waiting period to keep them from going out of business (in addition to higher premiums). If they didn’t, people on their death bed would buy policies and the insurance company would be out of business overnight.
Is funeral insurance tax deductible?
In most cases funeral insurance premiums are not tax deductible, but there’s generally no tax on the benefits the beneficiaries will receive. However, it’s always possible that tax laws could change in the future.
What are end of life expenses?
Those who die in a hospital rack up a very high average cost in the last month of life. Many deaths occur in intensive care units or ICUs, where charges for patients benefiting from cutting-edge procedures and advanced equipment can reach as much as $10,000 – $ 15,000 per day.
Final Expense vs. Pre-Need Final Expense Plans
| Final Expense | Pre-Need |
| Very flexible – can be used anywhere in the world | Very limited – can often be used only at the funeral home |
| Additional benefits typically available in the form of policy riders | Additional benefits aren’t typically offered |
| Money is paid directly to the beneficiary | Money is paid directly to the funeral home |
| Families may price-shop funeral services for the best deal | Funeral home sets prices; no price-shopping is available |
| Policy benefit may be divided among multiple people or organizations | Policy benefit is only for the funeral home |
| Usually builds cash value; can be withdrawn as a policy loan | May or may not build cash value |
While they offer more flexibility than pre-need plans, not all final expense policies are the same.
Or contact Jarad@diversifiedins.com or jason@diversifiedins.com
Diversified Insurance Brokers has been in business since 1980 and has over 20 different plans from which to choose. We are your back office to help keep up with all the changes, quote your cases, process your applications, track your cases and have your cases issued for your commissions to be paid quickly. We also have a 98% placement ratio.
What Questions Do Seniors Have About Final Expense Insurance?
Qualifying for a final expense policy is often easier than qualifying for other types of life insurance (such as term insurance). But there are still important questions to ask, such as:
- Does the policy expire?
- Do I have to take a medical exam?
- What features are included in the policy?
- How can the death benefit be used?
Does the policy expire?
Final expense policies don’t expire like term policies because they are a type of whole life insurance. Coverage won’t expire as long as premiums are paid.
Do I have to take a medical exam?
In most cases, a medical exam isn’t required to qualify because the face amount is typically under $50,000. Coverage is usually issued based on the applicant’s answers to health questions on the application.
What features are included in the policy?
Depending on the life insurance company, a final expense policy may have added features such as child riders, accidental death and dismemberment, or support benefits for surviving loved ones, such as funeral price shopping. Not all policies are the same, so make sure the policy’s benefits are reviewed carefully.
How can the death benefit be used?
The hardest thing we must ever face is the death of a loved one. On top of this, surviving loved ones are often left to handle any end-of-life medical expenses and funeral costs. These expenses can add to the sense of grief and stress surviving friends and family members feel. Final expense life insurance was created to prevent this added pressure.
Even though final expense focuses on covering funeral costs, the death benefit can be used for anything: medical bills, credit card debt, mortgage payments, etc. How the death benefit is spent is ultimately up to the beneficiary of the life insurance policy.