Extensive knowledge is needed to purchase burial insurance because of the numerous policies present in the market. Providers like AARP’s final expense insurance have made sure that there’s a policy for every need. Doing some self-assessment or consulting an independent agent/review will net you the insurance policy most suitable to your situation.
You can learn about the variety of final expense insurance available below:
A pre-need plan is a burial insurance policy that routes the payout directly to the funeral home. It will not pay any amount to your beneficiaries like family members.
Such policies allow you to choose the type of funeral you want, replete with arrangements to suit your budget. It is purchased post-selection of funeral arrangements. Once purchased, the amount is locked-down for good.
These policies lack room for alterations. They might even move with you if you leave for a different state. The cancellation period varies by state, with the national value set at three days. You won’t get a full refund after the end of this period.
Consumers will have many choices regarding well-known insurance companies that provide these types of products. Mutual of Omaha burial insurance is one of the most popular products that seniors tend to purchase.
Guaranteed Life Insurance
A guaranteed whole-life policy does what its name suggests: it provides coverage for your entire life. It is a whole life insurance plan that accepts your application without a medical exam, common to other insurance products. Such policies target senior citizens who will benefit from the lack of exhaustive medical checks.
The eligibility criteria may vary depending on the provider. Some might require you to answer a medical questionnaire and allow purchases based on answers. Others, like AARP’s policy, won’t have such requirements.
The numerous benefits of such policies are:
- Fixed Premiums: Premiums, once locked-in, won’t ever change. They get determined at the start of the insurance coverage period.
- Fixed Final Payout: The death benefit paid won’t change either. It gets finalized at the time of purchase.
- No Expiration Date: The policy doesn’t end throughout your lifespan. This variety is different from term insurance, which has a fixed deadline.
- Variable benefits like the early payout for a terminal diagnosis or premium waivers for nursing home stays are also available. These, of course, apply along with their riders.
The only caveat is the two-year waiting period within which the policy won’t apply. Only a certain percentage of the final amount might reach the benefactors if you die during this period.
Simplified Issue Whole Life Plans
This type of policy is similar to the previous one in most ways. The difference is the lack of a waiting period and mandatory clearance of a health-based questionnaire. Some providers are very stringent with the types and number of illnesses and conditions they permit.
A 24-month medical history check is typical of such policies. There must be no hospital or similar healthcare center admittance for any condition during this period. Any diagnosis and treatment of medical conditions like heart troubles, stroke, cancer, diabetes, immune system problems, etc. within this period will also be probed into.
Lung diseases, seizures, Parkinson’s/Alzheimer’s, kidney problems, etc. are other conditions that could set you back. Substance abuse-related condition acceptance can vary depending on the provider.
Whole Life Child Insurance policy, Combined Term and Burial policy, Funeral Trusts-based policy are the other types available.
The loss of a beloved is invaluable. The likes of AARP final expense insurance can help ease that burden by helping beneficiaries during such troubled times with the right policy and benefits.