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.