Final expense life insurance is simply a marketing terminology for a very simple whole life insurance policy. Basically, this type of policy is one which will pay out a death benefit to the beneficiaries upon the policy holder’s demise. In some instances, this may also include a payout to the beneficiary if they are unable to earn an income. The beneficiaries of a final expense life insurance Policy can utilize the policy s death benefit for almost any purpose at all.
There are two primary categories in which final expense life insurance policies are offered. These two categories consist of “whole life” policies and “conventional” or “managed” policies. It should be noted that both of these types of policies can be added into policies for seniors who are already covered by another insurance company. Many insurance companies offer seniors the option to combine their current life insurance policies with their final expense policies for an increased discount on premiums. Some insurance companies will even offer a discount if the two policies are combined.
One of the most popular features of a final expense life insurance Policy is the opportunity for the beneficiary to pay out his or her expenses after the policy holder dies. This is known as the cremation benefit. Cremation benefits are often paid immediately following the policy holder’s death. Insurance companies will often offer a discount if they include cremation as part of the final expense policy for seniors. To determine how much cremation will be charged in your particular situation, contact the funeral directors for the particular church where the deceased attended services.
It’s important to note that just because a beneficiary is entitled to a payment after the policy holder dies doesn’t mean that they will necessarily receive that money right away. A final expense life insurance Company will take time to process the cremation claim. This can occur in as little as twenty-four hours, depending upon how quickly the deceased’s estate is prepared for this service. Be aware however that if you wait more than three business days for your claim to be processed, it may not be paid. If this should happen to you, contact your funeral directors as soon as possible.
Another way to save money on final expense life insurance is to consider paying the premium ahead of time. In many cases, an advanced payment of premiums is only a few dollars. Even if your final expense life insurance Policy has a high premium, there are ways that you can reduce the cost. For example, if you have a large bank account, consider paying premiums in increments each month until your balance is at a level that you feel comfortable with. On the other hand, if you don’t maintain a savings account, consider paying premiums monthly instead of yearly so that you are only investing a portion of the total amount that you would invest in a savings account.
Another way to reduce your premiums is to apply online. You can complete the application process in a matter of minutes, and you will not have to fill out multiple applications in order to see if you qualify for discounts. Most companies will automatically apply your existing coverage and deductibles to the final cost of your coverage. When you apply online, you can also change the coverage amounts and deductibles at any time, making it easy to adjust the final expense life insurance rate. When you do this, the money you save can go directly toward reducing your premiums.
One more way to save money is to consider the elimination of extraneous coverage. While final expense insurance coverage is important to protect your family members from unforeseen medical bills, you may not need the coverage you think you do. For instance, if you or your loved ones require long term care insurance but don’t require dental coverage, you can likely eliminate these premiums by finding a lower deductible. Once you’ve saved enough money to cover your costs, you can begin to focus on increasing the amount of coverage you actually do need.
These insurance policy tips are helpful, but in order to be sure that you are truly covered adequately, it is always a good idea to consult with a licensed insurance agent. They are typically very knowledgeable about their products and can typically recommend a solution that will keep you covered and financially safe. Since they are experienced in their particular field, they are usually very good at helping you obtain the best coverage possible, even if it costs you a bit more than the average person. They may even be able to find a solution to one of your major concerns – whether it’s medical questions or other financial considerations.