Choosing the right Life insurance is a personal decision and involves taking the time to ensure you get the right fit for your needs. At Premium Choice, an innovative online insurance agency, we help clients with decision-making in several ways, including offering a product specifically designed for seniors. Premium Choice exclusively focuses on the senior market, providing you with a one-stop marketplace for end-to-end health and insurance solutions.
While various Life insurance products on the market address different needs, Final Expense Life insurance offers seniors the ability to take care of end-of-life illnesses and eliminates the financial burden that could befall their family members. These expenses include funeral costs (burial, cremation, casket, urn), outstanding debts, and end-of-life medical care. Funeral costs aren’t cheap and keep going up every year.
The Final Expense policy is Whole Life insurance and provides a smaller amount of coverage than permanent Life policies. Premiums don’t change during your lifetime. The policy builds tax-deferred cash value just like traditional Whole Life policies.
What to Look for in a Final Expense Life Policy
The beauty of Final Expense Life insurance is you purchase the policy later in life and are not required to undergo a medical exam or take a blood test. It may be possible to obtain coverage up to 80 years of age.
You have to answer a medical questionnaire to help determine the type of Final Expense Life policy available. Some of the questions may include the following:
- Suffered from a heart attack or stroke?
- Been diagnosed with cancer?
- Have Alzheimer’s or dementia?
Simplified Issue, Graded and Modified plans are available. Typically for a Graded or Modified plan, there is a reduced death benefit for the first two policy years for non-accidental death. Your Premium Choice agent can discuss the various plans in detail with you.
How Much Coverage Is Available?
Look at how much coverage is available to purchase with each policy you’re considering. A typical Final Expense Life insurance policy offers up to $50,000 in coverage. Individuals who are at high health risk can purchase plans that come with lower coverage amounts.
Policy Price a Consideration
Another factor to consider is the cost of the policy. While the cost for Final Expense Life insurance is more than a typical Term Life policy, which is designed for a younger demographic, you should be able to obtain a competitive rate for a Final Expense Life policy. Be sure to compare each policy, available coverage, and price. It’s not always an apples-to-apples comparison so read the fine print.
The Strength Behind the Insurance Company
Many insurance companies underwrite Final Expense Life policies. Make sure you buy a policy underwritten by a top-tier, financially stable insurance company. Look for an insurer with a strong track record of paying death benefits.
Credit rating agency AM Best assesses the financial stability and creditworthiness of insurers and the insurance industry and provides a rating for each insurance company. Look for an A (Excellent) or higher rating, so you can be confident that death benefits will be paid. Premium Choice only offers Life insurance policies through leading, top-rated insurers.
Review Insurance Company’s Cancellation Policy
Understand the insurance company’s cancellation policy. Some companies follow a state-mandated “free-look period” for insurance policies. If you cancel for any reason within that time frame, you’ll receive a full refund of any premiums paid. Depending on the state, this period can last anywhere from 10 to 30 days.
Cancellation terms vary depending on the Life insurance policy after the free-look period. Go over this with your Premium Choice insurance agent.
Talk to a Professional
Before buying a Life insurance policy, consult with a licensed life insurance agent who understands the products available and their features and specializes in the senior market. A professional can also review any other Life insurance plans you may have to ensure you’re getting the right policy fit.
