What is final expense life insurance? That is the question I'm going to answer in this video and blog post.
My name is Dominic Franchi, and I'm the President of Heritage Life Solutions, an independent life insurance broker. I can help you shop and compare the top-rated life insurance companies in the industry, finding you the best coverage at the most competitive rates.
Before I get started, I did promise a free giveaway, please on the link below:
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So the question today is... What is final expense life insurance?
Final expense life insurance is actually just a small whole life insurance policy designed to cover the cost of your final arrangements or funeral. With this policy, you don’t have to take a medical exam to qualify; your premiums will never increase, your coverage will never decrease, your policy lasts forever, it is easy to qualify with pre-existing conditions, it covers all causes of death, and you cannot lose your coverage later if your health changes or as you get older. It is a guaranteed death benefit. You pay the premiums, and the insurance company pays the death benefit to your loved ones when you pass away.
Final expense life insurance is not one size fits all; there are many different types that you can choose from to suit your individual and family needs.
There’s level benefit, graded benefit, and guaranteed issue. Within these types, there are even more variations and riders which allow you to tailor the policy further.
Let’s talk level benefit first; this is the best kind and the one that most people want to own. This kind of final expense has no restrictions on how or when you pass away. It’s full coverage, starting immediately. To qualify, you must be able to answer a series of yes/no questions honestly. Those questions will be verified by reviewing your pharmaceutical, motor vehicle, and MIB reports. Level benefit final expense whole life insurance accepts most pre-existing conditions but has some exclusions, like cancer within the last two years.
Graded death benefit final expense life insurance is similar to that of level benefit. The main difference is that if you were to pass away in the first two years of the policy of anything health-related, it pays a graded death benefit to your loved ones. Typically, it will be a 30% payout of the death benefit if you die within the first year and 60% payout if you die in year two. Starting at two years and one day, it is an automatic 100% payout of the death benefit, no matter what. This policy is usually offered to someone who answered all the health questions but had a medical condition that excluded them from the level benefit policy. Perhaps a medical condition like COPD or someone that had a heart attack within the last two years. With graded death benefit, accidents do not have a graded period and are covered right away.
The last kind of final expense life insurance is guaranteed issue final expense life insurance. This policy will contain a 2-year waiting period. If the insured dies from a health condition within the first two years, the payout will equal a return of premiums paid, plus 10%. Again, after two years, it is an automatic 100% payout no matter what. Again, like the graded benefit final expense, accidents are covered immediately without a waiting period. This is the easiest to qualify for because everyone is guaranteed approval; it covers all pre-existing conditions and has zero health questions.
You don’t have to know what kind of final expense life insurance you qualify for because we’ll go through a basic health and lifestyle questionnaire with you and recommend the best available policy. It’s important to be honest during the questionnaire so that our recommendation is accurate and that we don’t apply somewhere that will be declined.
If you have any questions about final expense or any other life insurance, contact me directly at 847-749-2933.
If you want to get an instant online final expense quote right now, please click ---> Instant Final Expense Quotes
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Once again, my name is Dominic Franchi, President at Heritage Life Solutions. Thank you for stopping by.