How Do You Decide on Your Desired Final Expense Coverage?
Monday, November 20, 2017, 6:00 PM | Leave Comment
Expensive funeral ceremonies put an additional financial burden on the loved ones when someone in the family passes away. But these are the expenses that need to be taken care of before the time arrives.
Learn about the different types of final expense insurance available, the procedure to get one and how to choose your desired insurance coverage.
Nobody likes to talk about the death or death related issues but the truth is that we all are going to pass away.
Preparing for one’s funeral and other after-death expenses is one of those topics that people try to avoid as much as possible. But pre-planning your funeral expenses can not only save money but protect the loved ones from an additional financial burden.
Final expense insurance plans came into existence just to make it easy.
Using these plans, you can pre-pay for funeral expenses through an affordable monthly premium and your loved ones can grieve in peace when you pass away.
Insurance providers are offering various insurance plans to take care of funeral and other expenses associated with the same.
These expenses can include the cost of casket, cemetery, flowers, embalming, transportation as well as a wake ceremony.
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Different Types of Coverage
Depending on the buyer’s requirement, insurance companies are providing different insurance plans to their customers.
Basically, there are three types of final expense insurance plans offered to them.
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Level Benefit Insurance
Level benefit insurance is the simplest among all three insurance plans. The offered policy enables everyone between 45 and 89 to get an insurance plan for them and receive the full-face value of their policy.
That means, whenever an insured dies their family will receive the full death benefit to arrange the funeral without worrying about the bills.
Moreover, there’s no waiting period and the policy comes into effect as soon as the insured buys it.
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Graded Benefit Insurance
People aging between 45 and 80 can qualify for a graded benefit insurance and receive the full death benefit if they an accidental death.
However, it’s not the same for non-accidental deaths. If the insured dies a non-accidental death, their loved ones may receive 40 percent of the death benefit in the first year of policy and 75 percent of the same in the second year of the policy.
However, for the deaths in the third year and after that, the beneficiaries will receive the full-face value of the policy.
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Modified Benefit Insurance
Modified Benefit insurance is offered to people aging between 45 and 75 and their family receive the full death benefit if they die an accidental death.
But, if they die during first two years of the policy, the beneficiaries will get 110 percent of the earned premium.
However, for the deaths in the third year and after that, the loved ones get the full death benefit amount.
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How to Apply for A Burial Insurance
Applying for an insurance policy isn’t as complicated as it used to be. You just need to fill an online form and representatives from different insurance companies will reach you with multiple final expense insurance quotes.
You can let them know your insurance requirements such as desired coverage as well as your budget constraints. They will patiently listen to your requirements and clearly explain the available plans.
If you are still in a dilemma and can’t decide which insurance plan should you go for, they will help you with the same as well.
Once you have understood what benefits and coverage these plans offer, you can shortlist a few of them to buy.
Comparing the benefits and coverage for their prices, you can choose an insurance plan that provides maximum at the best price.
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Calculating Your Desired Funeral Coverage
The coverage you may require taking care of your final expenses depends on how you want your funeral to take place.
If you just want a basic funeral with an ordinary casket at the cemetery plot, you may need a coverage around $7,500 to $10,000 but if you want a wake ceremony along with the same, this may go up to $15,000 or higher.
In event of a loved one reaching the funeral venue late, the family waits for them and the body is embalmed till they arrive.
Sometimes, the body also needs to be transported from one place to another. To cope with such cases the expenses go further high and you may need a plan with a coverage from $35,000 to $40,000.
Mostly, the final expense insurance companies provide a coverage up to $50,000 but going beyond that may not be that easy. But, there are some ways to get that as well.
If you want a funeral insurance coverage more than $50,000, you can go for universal guaranteed life (UGL) insurance for the same.
