Definition of Final Expense Insurance:
Final Expense Insurance is typically a smaller whole life insurance policy that will range from $5,000 up to $25,000. The primary reason for a final expense benefit is to cover funeral expenses, like grave marker and cemetery plots, as well as any debts that might not be considered to be forgivable upon death.
Typically, there are two reasons why someone would purchase final expense insurance. First, the individual has no coverage and there might be a pre-existing condition preventing them from purchasing a conventional life insurance policy. Second, the potential insured desires to leave money behind so that family or friends have a way to provide a proper burial.
What to Look for in a Final Expense Company
At MSIS we feel that there are several important questions to ask while shopping for a final expense carrier and product. It is our belief that the key to finding best fit for you is by choosing a knowledgeable agency that will impartially search for the best carrier for you. Below are the top three questions that we use to help you find the right final expense insurance policy.
• Are the carriers top rated?
• Are the premiums competitively priced?
• Are the premiums fixed for the remainder of your life?
What type of final expense life insurance is best for me?
This is the most common question that clients ask us. In all reality the best final expense product is the one we can help you qualify for. You have three choices for final expense insurance. They are as follows.
Simplified Issue: These policies ask some health questions. Usually the carrier will conduct a background health screening. If you can pass the underwriting health questions and medical information bureau, this type of policy is a less expensive alternative to the guaranteed issue and graded benefit options.
Guaranteed Issue: No exam, no health questions, everyone between the ages 50-80 can qualify. However, if you are looking for the most affordable final expense plan, this might not be the best choice. Why? Premiums can be higher on guaranteed issue life insurance because the risk is much higher for the carrier.
Graded Benefits: Some guaranteed issue life insurance contracts contain wording that allows for a graded benefit during the first 1-4 years of coverage. A graded benefit policy is one that pays a lower amount if death occurs during the first few years after the policy is purchased. Only after coverage has been in effect for the full maturity of the contract, is the death benefit increased to the actual full-face amount.
A graded benefit is used to reduce the cost of policies for less healthy people who are already seeking guaranteed issue coverage. Graded benefits reduce the risk taken on by insurance carriers who accept applications from potentially terminally ill consumers.
Our (MSIS) Top 10 Final Expense Life Insurance Carriers
According to our research in the Upper Peninsula of Michigan. The following carriers, in our opinion have historically shown to be the best carriers for our client’s life insurance needs. These carriers are listed in alphabetical order because there is no one carrier that we feel will always be the best fit for everyone. The perfect carrier for you may not be the perfect carrier for someone else.
MSIS does not take a cookie cutter approach when it comes to life insurance planning for our clients. We feel that it is our job to help explain to you all of the differences between all the companies so you can make the best-informed decision that is the perfect fit for your needs.
Our 10 Best Final Expense Life Insurance Companies
1. AIG - Guaranteed Issue Whole Life
2. Americo - Ultra Protector Series
3. American National - Strategy Whole Life
4. Assurity - Simplified Level Benefit Whole Life
5. Foresters – Plan Right Whole Life
6. Gerber - Guaranteed Life
7. Mutual of Omaha - Living Promise
8. Pekin – Simplified Issue Whole Life
9. Transamerica - Immediate Solution Standard
10. United Home Life - Express Issue Premier