Final Expense Life Insurance Plans
Also known as Burial Insurance
Final Expense Life Insurance plans are also known as Burial Insurance are Whole Life Plans ( They will not expire) and are usually for amounts between $2K – $100K. They are designed to take care of funeral costs , travel expenses for relatives, small debts, etc.
I often see people , in their late 60’s +, some with minor health conditions, apply for these types of plans. I have a couple of carriers that will go up to 84, most plans have a max issue age of between 75 and 80.
Most of carriers will offer Three levels of coverage:
Level Life Insurance Plans
If you meet the carriers health guidelines then your first option would be to apply for a standard Level Life Insurance Policy. The bottom line with this plan is that it pays 100% of the policy face amount from day one. A level plan allows you to apply for a higher coverage amount.
Graded / Modified Life Insurance Plans
If you have health some health issues, then , depending on the health problem(s), a carrier may offer you a Graded Life Insurance Plan. These plans do not pay the full premium for the first two or three years (depends on the carrier) after that period they will pay the full face amount.
Guaranteed Issue Plans – Graded Plans Only.
For those with several health issues, carriers will offer a Graded Guaranteed Issue Plan. These are low face amount plans, generally no more than $10K of coverage. They are graded and generally do not pay the full face amount until year four . These are guaranteed issue and you cannot, generally , be turned down. Yes, these plans can be expensive.
How do I apply?
Give me a call at 512-963-5000 or fill out my contact request form. We can review your current situation and I can give you a quote over the phone!