Life insurance for funeral expenses only could be more accessible if you cannot qualify for or afford life insurance. A provider may deny your life insurance application based on health screening results. Some conditions or lifestyle choices could increase your premiums, such as being a tobacco smoker. And premium rates increase with your age and decline in health.
Similarly, companies want you to buy a life insurance policy when you are young, so you pay more into it over the years. They may offer lower monthly payments when you are in your 30s and 40s than if you purchase a policy in your 70s or 80s.
Almost all senior burial insurance policies do not require a medical exam. Burial insurance applications generally have questions about your health and other factors. Your answers influence your premium rate. Like life insurance, smoking history and age can affect your monthly payment.
Insurance companies usually have an age restriction for life insurance at 70 or 75 years of age. However, they set the limit for final expense policies much higher, such as 85 years of age.
In most cases, you may fit the target market for the cheapest final expenses insurance if you:
- Are in poor health.
- Have a low income.
- Have no other savings.
- Are older than 75 years old.
Since final expense insurance for seniors does not require a medical exam, providers usually limit benefits for the first two or three years. You could end up paying higher premiums for a policy that does not require a health screening than one that does.
Some insurance companies have “guaranteed issue” policies that insure you even with a serious health condition. It does not require a medical exam or health questionnaire. However, guaranteed issue life insurance has smaller benefit amounts and higher monthly premiums.
Guaranteed issue and whole life insurance policies typically have two-year waiting periods and graded death benefits. Your beneficiaries will not receive the full payout if you die during the waiting period. Instead, they may receive 10% of the full benefit or 110% of the premiums paid.
Here are some of the benefits of final expense insurance for seniors:
- You can get a policy even in poor health
- Most policies do not require a physical or health screening
- Most policies have fixed premiums that do not increase over time
- Benefit amount can never decrease (unless you borrow against it)
- Your beneficiaries can use the funds however needed
- You have a guaranteed benefit as long as you pay your premiums
- Funeral insurance can be less expensive than life insurance
The first step to getting a final expense policy is to request final expense life insurance quotes from multiple providers. You may need to provide your gender, date of birth, and ZIP code.
Filter out policies with expensive premiums and insufficient coverage.Then, sign up for the insurance that best matches your budget and funeral needs.
Once the policyholder passes, the beneficiary can make a claim to the company. Claims usually involve sending a copy of the death certificate. Beneficiaries may receive payment a few days or weeks after processing and approval.