You know you need life insurance, but as you begin to shop for it many people wonder if they’ve waited too long. Some are told that they can no longer qualify, the rates are too expensive, or the policy won’t pay if you die in the first 2 years. These are common issues, so today we’re discussing your life insurance policies in Canfield as they relate to burial and final expenses.
1. What is a final expense life insurance policy used for?
Life insurance is commonly purchased to cover the cost of a funeral or to pay any final expenses at a fraction of their actual cost. Most of the clients we work with want to make sure they have some level of coverage when they pass away to make sure they do not leave any debt or bills behind for their loved ones.
2. How much life insurance can you buy for final expenses?
To cover final expenses, there are numerous types of policies available. Final expense policies are usually less than $100,000 of coverage and do not require a medical exam.
3. What to look for in a final expense policy.
When shopping for life insurance policies in Canfield, you want to pay attention to the fine print and the price. The price is important because a final expense policy should be the last policy you ever have to buy. You want to make sure that the price fits your budget so you never have to worry about missing a payment and losing the policy.
4. How are rates and eligibility determined?
Life insurance rates are determined by age, health, and lifestyle. Unless you have a dangerous job, participate in hazardous sports, or travel to dangerous places, your rates are determined by those factors.
5. What are the age limits?
Up until age 80, there are many options for final expense life insurance, especially if you are in good health. These policies pay out immediately and do not have a 2-year waiting period like some other policies. Most insurance companies will not insure anyone over the age of 85 because the average life expectancy of an American male is 77, and the life expectancy for a female is 82.
6. Pay attention to the fine print.
Be wary of a policy that seems too good to be true. The phone calls we receive most often are from those who purchased a life insurance policy in Canfield with “just 3 questions” to answer. Every time a client asks me about these policies, We cringe. We often hear horror stories about how an insurer found reasons not to pay a claim due to undisclosed medical conditions.
7. Self-insured vs. buying insurance.
Self-insurance is the concept of saving money to ensure oneself and can be ideal for someone who is otherwise uninsurable or for someone who would only qualify for very expensive rates due to age, health factors, or smoking.
8. Determining the amount of coverage you need for final expenses.
The amount of coverage you need for a final expense policy can vary significantly depending on your needs. The average funeral as of 2017 runs between $8,000 and $10,000, not including any additional items such as flowers.
Still, have questions? Please call us today at 330-337-9557
We will work with you to make sure we find you the best policy you can qualify for.