Senior Life Insurance and Final Expense Plans
When our time comes, none of us wants to place an undue burden on loved ones left behind.
There are steps everyone ought to take to lessen the burden on those we will one day leave behind. Making arrangements for payment of our final expenses is one such step.
Funeral costs nowadays can run upwards of $10,000. Even if cost is not a factor for your loved ones, think of the trials they will face if they have to make all your funeral arrangements and deal with their loss at the same. The stress could be overwhelming at such a difficult time, and for many loved ones the financial implications could be disastrous. No one wants his or her surviving spouse or children facing such hardship at such a difficult time—especially when there is a simple solution.
Final expense insurance pays most costs associated with funerals. It is easy to purchase, and many plans do not require a medical examination. You can choose from a variety of final expense plans providing various degrees of coverage, and costs are generally low since the face value of any plan is low compared to that of a typical life insurance policy. A final expense policy is usually designed to help cover short-term costs following death and nothing more.
Final expense insurance is especially important if you do not have life insurance, as loved ones may have no other means of covering your final expense costs. What a blessing it would be to them if they did not have to investigate the cost of a funeral, casket, burial plot, headstone, and plenty more while grieving your loss—and, very possibly, wondering how they were going to pay for everything!
Four Points to Consider in Looking at Final Expense Plans
- How much coverage do you need? Final expense plans can be tailored to your final expense plans. It is advisable to discuss final expense costs and options with a funeral director you trust so that you can determine the ideal value of your final expense plan. By making your own final expense arrangements and discussing your end-of-life wishes, you can ensure that your final expense plan will cover exactly what you want it to. Without preparation of this sort in place, imagine how vulnerable your loved ones will be at a difficult time, and how susceptible they may be to pressures to pay a fortune for services and items you did not want.
- Should you purchase a term life or whole life policy? As you probably know, term policies expire after a certain length of time, while whole life policies are in effect until death. While some influential commentators advise against purchasing whole life insurance policies, there are good reasons some people are better off purchasing whole life final expense policies. While term policies are usually cheaper, they expire after a certain time, often when the policyholder reaches age 80. Many final expense plans impose an age limit of 75 for purchase, so it is possible that someone purchasing a senior term life final expense plan may eventually be without final expense coverage. A whole life plan, remember, continues until death—but be aware that the younger you are when you purchase a whole life plan, the less it is likely to cost per year.
- Do you have a standard life insurance policy? If you already have a long term life insurance policy, you may well be in a position not to need a final expense plan. Planning for your final expenses is still advisable, however, so that your final expenses will be covered according to your wishes. If you already have a senior whole life insurance policy, it is advisable to talk to a life insurance professional about whether or not you need final expense insurance. If you currently do not have a standard life insurance policy of any sort, you need to consider your insurance needs with some urgency. You may wish to apply for a standard life insurance policy if you have important considerations beyond final expenses, but for people without sufficient life insurance, final expense plans are strongly recommended.
- Do you have a preexisting condition? If you have a preexisting condition, your standard life insurance policy options may be severely limited, and enrolling in a final expense plan may be vital. Guaranteed issue final expense plans do not require you to answer any medical questions or undergo any exams prior to issue—so there are no exclusions based on preexisting conditions. Guaranteed issue plans may require a waiting period, however, before they take effect. For this reason, if you do not have preexisting conditions, you may prefer a plan requiring a medical examination and, typically, lower premiums.
A variety of leading companies offer final expense policies to people of Medicare age—and for many Americans, final expense plans add to the security and peace of mind provided by Medigap, Medicare Advantage, and Medicare prescription drug plans. No one wants to burden loved ones left behind, and for many people final expense plans are the surest guarantee that this will not happen.