Final expense life insurance is designed for individuals needing simplified or guaranteed issue coverage because of health or other underwriting impairments
which prevent them from obtaining standard life insurance. In the case of
guaranteed coverage, the full death benefit may not be available until the
third year of coverage at amounts as low as $2,000 or up to $100,000 or higher.
Issue ages range from 0 to 80, or even age 85 with some benefit limits. People
are living longer, and may have outlived their term life insurance plans issued
when they were younger with a mortgage and family to support. Many individuals
continue to work past their planned retirement age and need to replace their
employer provided group life insurance. Adult children may want to help pay for
a final needs plan to cover a parent's end of life expenses. With Home
Office approval, a final expense plan may be issued to fund a favorite charity
or project as a memorial gift.
National Guardian Life, is a company providing whole life insurance on a
guaranteed issue basis to individuals age 40 to 80. There are no health
questions on the one page application, and smokers pay no more than
non-smokers. Premiums and the coverage amount you select are level, and your
policy cannot be cancelled when paid on time. Face amounts range from $2,500 to
$25,000 for the NGL final expense policy.
Call Bob Coleman at 877-487-8376 for rates and more information. Or, click here to get a
no obligation quote.
Final expense life insurance is used to pay for burial costs and can serve
as a clean-up fund to pay outstanding bills. Coverage is usually from $5,000 to $25,000 on guaranteed issue plans to those aged 50-80. Higher policy amounts are available in standard and preferred
underwriting classifications. Guaranteed issue plans have a graded death benefit; That is, the full face amount is not effective unless death occurs after the third policy anniversary. However,
premium paid within the first 2 years of policy issue is returned. Click on the link below or the Gerber logo above to see a brochure with sample rates:
Applications use simplified underwriting for even the most serious medical impairments. Why do you need life insurance when you have
cash to pay final expense costs?
1. Life insurance is paid with discounted dollars. For example: for a person aged 70 with a limited life expectancy due to chronic
illness or disease, the approximate annual cost for $10,000 guaranteed issue coverage is $1,100. If the insured died after 8 years, $8,800 premium paid would generate $10,000 in proceeds. The
discounted premium ratio would be more favorable at a standard or preferred rate.
2. Life insurance proceeds are paid at the time needed outside of probate directly to the beneficiary. Using cash on hand may cause
delays if accounts cannot be accessed by an estate administrator. Early withdrawal of funds may trigger penalties and fees.
3. Life insurance policy proceeds can be assigned to a mortuary or institution designated to handle the final disposition of
4. Life insurance can be placed into an irrevocable trust directed to pay burial costs with the remaining unused balance to be paid to
beneficiaries. An insurance trust meeting Medicaid look-back rules could exclude life insurance proceeds from seizure to recover long term care paid by the government agency (Medi-Cal in
5. Gerber Life final expense insurance plan is a permanent (not term) policy and accumulates cash values with guaranteed surrender and
Contact me to get a quote for yourself, a parent, or grandparent to cover final expenses.
Final expense life insurance, sometimes called a
burial policy, is a plan designed for those between the ages 0-80 to serve as a
clean-up fund and issued in amounts of $2,000 to $35,000, for example.
Traditionally, the policies were issued by religious and fraternal
organizations for the benefit of their members and families. A final expense
plan is now available as part of my agency’s senior services products; Medigap,
Medicare Advantage supplement, Part D, prescription drug discount card,
annuities and long term care insurance. Foresters (Independent Order of
Foresters) offers final expense life plans in the following underwriting
categories: 1. Level-full face amount as applied for, 2. Graded Benefit-an
increasing percentage of the policy amount paid if death occurs in the first 2
years and full amount in the third year and thereafter, and 3. Modified-no
death proceeds paid in the first 2 policy years and full face amount in the
third year and after. Forester’s final expense plans are approved or declined at
the time of application with the agent in person via a phone call to the
company’s underwriting department. Forester’s has been in business for more
than 100 years. The policy premium is guaranteed level for the life of the
policy, will develop cash values at interest, and is a form of permanent life
insurance-not term or accident only TV or mail-order group temporary
coverage. Contact me for
information to review and compare final expense life insurance plans.