Something I hear a lot is, “I already have life insurance. Why do I need final expense insurance?” This question usually lies from a lack of understanding of what is final expense insurance.
What Is Final Expense Insurance?
The first thing to understand is the difference between final expense insurance and “traditional life insurance.”
Final expense insurance, also known as burial insurance and funeral insurance, is bought with a lower face amount compared to traditional life insurance. A traditional term life insurance or whole life insurance policy is used for income replacement, repayment of debts, mortgages, etc. after someone dies.
Funeral insurance, on the other hand, is used to provide immediate funds for a person’s funeral, which can be up to $20,000 and more!
Is There A Medical Exam With Final Expense Insurance?
A great thing about burial insurance is that there is not a medical exam. You will be asked a handful of medical questions, but it is not a detailed questionnaire.
Plus, in most states, even if you don’t “pass” the medical questions, you can still be eligible for what is called a Guaranteed Issue policy. This allows you to get final expense financial protection even with poor health. This typically involves having to wait 2 years to get your full face amount, but if you were to die during that time, your beneficiaries would still have the premiums returned plus some interest.
With a traditional insurance policy, the application process is much longer with more extensive underwriting.
Final expense insurance is approved quickly, ensuring you will be covered almost instantly.
How Long Do Final Expense Insurance Claims Get Paid?
When you die, your beneficiaries will have a lot to take care of. Take a look at our funeral planning guide to see all that is required. The last thing you want them worrying about is how to pay for everything.
Traditional insurance can take weeks to pay. Final expense funds are usually paid out within 24 hours.
Think about all the fees that can pile up while waiting on a regular insurance policy. Think about the daily bills that aren’t getting paid. The landlord may be patient, but he’ll eventually want his rent.
Final expense insurance pays quickly to cover the costs of a funeral, burial, cremation, and miscellaneous bills that need to be paid by survivors. You can use savings for this, but what if savings is depleted? What if those funds aren’t liquid and it takes time to convert them to cash?
How Gee Insurance Solutions Can Help
Buying a small $5,000 – $20,000 whole life final expense insurance policy will be one of the best gifts you can provide your family. It is an inexpensive way to make sure your wishes are respected at the end of your life.
Here at Gee Insurance Solutions, we pride ourselves in bringing you the best final expense insurance at the lowest cost available.
Now that you know what is final expense insurance, give us a call today to get your free quote. Your family will be glad you did.