Final Expense Burial Insurance

It is no secret that most families are going through a financial crisis at the time of the death of their loved one. If you have a family member who recently passed away, it is likely that you are upset and are not sure what to do. There are so many costs associated with a funeral that so many families struggle to cover. The good news is that there is a solution that will help those who are struggling financially to still be able to bury their loved ones.

What Is Funeral Insurance, Final Expense & Burial Insurance?

Burial insurance, final expense and funeral insurance all essentially do the same thing: they cover the cost of burial or cremation. Many people choose to purchase a burial insurance policy to reduce the amount of debt they leave behind after they die.

Let us go through the basics of a burial insurance policy. Final expense burial insurance is a specialized type of life insurance policy that helps to pay for one’s funeral expenses and other related costs. This type of insurance is available to individuals of all ages, but is typically purchased by people after they turn 50. Burial insurance policies are normally described in one of two ways: as a whole-life burial insurance policy or a term burial insurance policy. With whole life burial insurance, the insurance company promises to pay the face value of the policy over the lifetime of the policyholder.

How does final expense insurance work?

Burial policies work like this…

Monthly Premiums Can Never Increase
Policy Cannot Expire At Any Age

Death Benefits Are Guaranteed To Never Decrease
No Medical Or Physical Exam Necessary

As you can see, these are exceptionally basic to comprehend.

Final Expense Life insurance is an agreement that stipulates the insurance provider will pay the recommended death benefit once the insured passes.

Basically, as soon as you die, your burial policy will lead to the insurance provider cutting a tax-free check directly to your beneficiary(s).

This will provide money to pay for your burial arrangements or other costs.

There are no terms or restrictions on how the money is to be used. These burial life policies merely pay out cold hard cash.

The bright side is that every funeral home will accept cash. So the fact that they simply payout cash is a good thing.

That cash will remain with your family to enhance their lives as they see fit if there are any earnings leftover after all the final costs have been paid.

Insurers are usually qualified for 4 Options

Each final expense insurance company will generally have different health ratings for their insurance. The majority of the time they will have 3 ratings, however some companies only have 2.

Which one you get approved for depends upon your health.

# 1– Level or Preferred Benefit

When you get approved for level benefit, this is where you say no to all of the insurers health questions. Your coverage policy will protect you 100% from the first day and you will pay the lowest price they offer.

# 2– Graded Benefit Plan

A graded rating is normally the medium alternative. You would be offed this plan if you answered yes to any of their “graded” health questions.

If approved for this plan, it is typical to provide partial protection throughout the very first 2 years of the policy. A lot of graded plans, will pay out about 30% of the death benefit if you happen to pass away during the first year. During the 2nd year of the insurance policy, it will pay 70% of the death benefit.

The precise percentages vary by company. Year one payouts normally range from 25% -40%. Year 2 payments typically range from 50% -75%.

# 3– Modified Plan

A modified plan is always the third highest risk and insurance provider can offer. They would only give you this option if you have serious health concerns and answer yes that appeared in the “modified” area of their health questions.

Modified plans are a “return of premium” if the insured passes during the first two years. After the two years…it will pay the death benefit.

# 4– Guaranteed Issue Plan

Guaranteed issue is the process by which a life insurance company will issue a policy to an applicant without conducting a medical exam or health screening.

Guaranteed issue policies are most commonly used by consumers who have very serious health conditions like AIDS, Alzheimer’s Disease, cancers, and many more. If you suffer from one of these conditions you may not be able to get a life insurance policy through normal underwriting. But by purchasing a guaranteed issue policy, you will receive guaranteed coverage even if you have health problems. Although, just like the modified plan, if the insured happens to pass away during the first two years of coverage…the policy will return the premiums to the payor of the policy.

What are some aspects of a Final Expense Policy?

There are a few things that make funeral insurance easy to purchase:

1. Easy Underwriting

This gives seniors with high risk conditions the ability to purchase life insurance and qualify for a day one coverage after the policy has been issued.

Most common health conditions people can qualify with a preferred rating are:

ADL’s (Assistance with Activities of Daily Living)
Amputation due to disease
Angina
Angioplasty (Circulatory-Heart Surgery)
Arrhythmia
Aneurysms
Blood Thinners
Blood Clots
Water Pills
Arthritis
Asthma
Anxiety Medications
Cancer (after 2 years of treatment free)
Cerebral Palsy
COPD & Chronic Bronchitis
Cirrhosis
Cystic Fibrosis
Defibrillator
Depression
Diabetes (type 2 diabetes or type 1 diabetes)
Diabetic Neuropathy
Diabetic Retinopathy
Home Health Care
Drug or Alchohol Abuse or Treatments
Heart Attacks (Over 1 Year Ago)
Heart Surgery

Disability (A disability will not effect an underwriting in any way)
Hospital Stays
Huntington’s Disease
Irregular Heart Rhythm
Lupus
Muscular Dystrophy (Brain)
Non-Cancerous Tumors
Pancreatitis (Chronic)
Parkinson’s Disease
Strokes ( Over 1 Year Ago)
Obesity
Hepatitis/Liver Disease or Disorders
Bi-Polar Disorder
Schizophrenia
Multiple Sclerosis
Pacemaker Implant
Sickle Cell Anemia
Sleep Apnea
Spinal Bifida
Seizures Neurological Disorders
Stents
TIA (Mini Strokes)
Tobacco Use (Depending on the type of Tobacco)
Ulcerative Colitis
Walkers
Wheel Chair Bound

There are also many other high risk health conditions that are also insurable. If you have a condition that is not mentioned…Call me. Don’t think it’s because you can not be insured.

2. No Health Questions asked for GAURANTEED ISSUE insurance policy

Although final expense insurance coverage, as a whole, has incredibly lenient underwriting. There are some health conditions that are so risky that they are considered “uninsurable”.

For these high-risk conditions, a guaranteed life insurance coverage is the only option.

Guaranteed Issued plans have no health underwriting questions. As a matter of fact, as long as you are psychologically able to enter into a legal contract…your approval is guaranteed.

What’s the catch?

There are two disadvantages to these “no health questions” asked insurance policies which is why they are just to be utilized as a last resort.

They ALL included a 24-month waiting period. The insurance company will simply refund all premiums paid plus interest (typically 10%) if the insured ought to pass away within the first 24 months of the purchased policy.

For them to issue such a policy, the cost will be much higher relative to insurance options that do have health questions. Because the insurance companies are taking on much more of a risk (they know nothing about your health), they need to charge more money to make up for the increased danger.
A guaranteed issue final expense insurance is your only option if you have any of the following health issues:

Terminal Illness
Hospice Care
On Kidney Dialysis
HIV or AIDS
Currently In A Hospital Or Nursing Facility
Alzheimer’s Or Dementia

At the end of the day, there is virtually no health issue you could have where you would not be able to get an insurance policy.

3. You can purchase small face value options

Not everyone wants to get buried in a casket. Some people would prefer to be cremated. There are some Final Expense Insurance carriers that issue out policies as little as $1,000 in coverage. This is great because you can buy a policy for what you need!

4. Final Expense Policies have cash value

A good benefit of a Burial Insurance is that, since it is a whole life policy, it can build cash value. Cash value simply means that a percentage of your premiums go towards building your policies cash value. The rest of the premiums will go towards the insurance companies operating and administrative costs. As you continue to pay for your insurance, the cash value will continue to grow. You can use the cash value to take out a partial loan against your policy. These loans that you take out do not have to be paid back on a set timetable. You can take your time. Also, these loans have lower interest rates compared to banks.

Why Purchase a Burial Insurance Plan?

When your loved ones plan your funeral, they want to ensure that you can rest in peace and that your funeral is reflective of who you were and what you meant to others. Funeral insurance is a great way to save money for your loved ones.

Other reasons to puchase a policy include:

the insured would like to leave your spouse with a few years of financial security
the insured would like pay off medical bills or any debts in addition to their funeral expenses
the insured does not have much in cash to cover the funeral bills
the insured has the money, but would prefer to buy an insurance policy and use that instead

Everyone is different and may have different reason on why they should purchase one.

Who Can Get a Final Expense Insurance Policy?

Anyone can be issued a policy for ages 0-89. The most common ages people buy a policy is from 50 to about 80 years of age. Although you have to understand that not everyone will qualify for the preferred rating. But if you fall between these ages there is a good chance you can get approved for a policy.

How To Save Money On Your Insurance Policy?

The easiest answer is to use an independent insurance agent that is contracted with a lot of inusrance companies. That is the only way to shop around for a policy.

The cheapest funeral insurance for seniors are sold through independent agents or agencies. If you were to work with an independent sales person and give that agent all of the necessary information with health risk assessments… their job is to find the cheapest policy possible. They really work for you!

Why choose Antonio Espino help you with your insurance needs?

1. I am LOCAL. This might not be a big deal for most people, but I am from the Rio Grande Valley. Born and raised from Brownsville, TX. The reason why this is important is because I help the beneficiaries recieve their death benefit once the insured has passed. Instead of worrying on how to pay the funeral and trying to figure out where they purchased the insurance policy…I am a phone call or an office visit away. I can handle and expedite the claim so that way the arrangements can be made and you can get back to mourning.

2. I am contracted with more than 10 Final Expense Burial Insurance companies. This can help anyone find and shop for the best rate in hope of finding 1st day coverage. I work for you!

3. I provide quotes easily and it is a no pressure sales system that I use. I am a horrible sales person lol. My selling strategy is to mention it. I only like to help people if they really want the help. The mere fact that you called me to inquire for a quote makes me believe that you are thinking about it, though.