Is Final Expense Worth It
Final expense insurance can be a big help for many people in their funeral planning, but that doesn’t mean it’s the best life insurance policy for everyone. Before you decide on a final expense policy, you need to ask yourself a couple of questions first.
How Much Coverage Do You Want To Provide Your Beneficiaries?
With a final expense policy, you can provide your beneficiaries with a coverage amount (death benefit) of up to $50,000. These policies do not exceed this amount, but if you would prefer to have a life insurance policy that provides a larger death benefit, then you may want to consider another policy, such as a traditional whole life policy.
Granted, for some people, the amount that a final expense policy provides is more than enough to cover funeral and medical costs and still have some leftover for the beneficiaries to use on other expenses.
Overall, the amount of coverage you need will depend on the funeral services you have arranged, how many dependents you have, and how much debt and other out-of-pocket costs will be left in the responsibility of your loved ones after your passing.
Do You Qualify For Other Life Insurance Policies?
While having a life insurance policy can provide financial security for your loved ones, you need to make sure you can qualify for a policy first!
There are several reasons why a life insurance company may deny you a policy. These reasons can include but are not limited to:
- Your health – Whether physical or mental health, your current and past medical history can play a big factor in getting life insurance. Depending on how serious your health issues are, the insurance company may view you as too high-risk and deny you coverage. For these reasons, you will always be asked to have a medical exam to determine your eligibility.
- Your lifestyle – Similar to your health, if you have dangerous hobbies or live an unhealthy lifestyle, the life insurance company can choose to deny you coverage. Now, if you are not denied, you could be charged a much higher rate.
- Your age – It’s typically recommended to get a life insurance policy when you’re younger as it becomes more difficult as you age. The older you are, the more high-risk the insurance company will see you as.
If, for any of these reasons, you do not qualify for a traditional life insurance policy, there’s no need to worry. You can still qualify for a final expense policy. A final expense policy offers near-certain approval and does not ask you to complete a medical exam to determine your eligibility.
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Do I Need Final Expense?
Ultimately, the answer to this question depends on what you are looking for and what you qualify for! With this in mind, a final expense policy can be quite beneficial for many people, especially those who may not qualify for a traditional life insurance policy. The no medical exam and almost guaranteed approval rate are also attractive features of final expense.
If you’re still unsure about final expense insurance and want to learn more, give American Insurance Group a call today. We’re here to make sure you get the coverage you deserve!
