What is Final Expense Insurance, and why do you need it? If you have a business, you have an investment, or you run a hobby business, you most likely have plans for retirement. While we all want to make sure our dependents are taken care of after we are gone, the truth is that no one plans on dying. But if something should happen to us, there is nothing as devastating as the sudden out of pocket expense of paying your final expense insurance premiums.
There are different types of final expense insurance policies. One is guaranteed issue; this is usually purchased by individuals and not businesses. With guaranteed issue, you pay a small premium every year, regardless of how much coverage you may need. If you are healthy, you don’t have to worry about a guaranteed issue policy. If you are not healthy, you can buy a policy with a $1500 dollar deductible and still be protected.
Guaranteed Universal Life (GUL) and final expense insurance policies are both guaranteed issue policies. The difference between the two is that with the former, you will never need to worry about a guaranteed issue. Your premium will be low for as long as you don’t become ill and/or have other problems that keep you from making the premium payment. And with the latter, once you reach a certain age, the premiums will start to increase. This is due to the fact that your policy will grow in value as the years pass by.
Guaranteed final expense insurance makes sense only for people who are very healthy. People who smoke, drink, have high cholesterol, or high blood pressure will generally be unable to pay the premiums on a guaranteed final expense insurance policy. But if you are healthy, then this type of policy makes sense. It is more affordable for people who don’t have much money or assets to leave to their heirs. And as you age, your death benefit will increase and the premiums will decrease.
Guaranteed final expense life insurance provides support for your spouse and your children. If you have an insured spouse, then he/she is allowed to have a death benefit, which will cover the cost of the funeral, burial, and other costs incurred during your life (both payments and maintenance). In addition, the premium cost will also be split between your named beneficiaries. This is a good option for people who want to leave their family members financially supported after their death.
The main reason to consider this type of final expense insurance is so you can provide health care for your spouse and your dependent children. Let’s say, for example, that you have a family member who has a serious illness, such as cancer. The family will need financial support for their long-term medical expenses. This type of insurance company will help them obtain the medical records they will need in order to determine the best course of treatment for their loved one. It is important to note that if a person passes away due to a terminal illness, the insurance company cannot require you to submit medical records to support their decision. So, be aware that this type of policy does not eliminate the need to submit records to the insurance company.
Another great reason to consider a guaranteed final expense insurance policy is to cover the cost of living expenses while you are not alive. Guaranteed final expense insurance policies typically pay benefits to the survivors or beneficiaries upon your death, depending on the length of time you have been covered by your life insurance policies. For people who are looking forward to retiring to a tropical island paradise, this type of final expense insurance policy is a perfect way to pay your last end-of-life expenses.
Guaranteed final expense insurance policies are offered in two different options: One, a decreasing benefit plan; and two, an increasing benefit plan. A decreasing benefit plan pays cash benefits only as your death benefits decrease. For example, if you are insured for a minimum of five years, your final expense insurance company will stop paying benefits as your insurance coverage progresses. Two smaller policies are available for those who want more coverage. The premiums of these policies are often affordable compared to whole and single life insurance policies.