Frequently Asked Questions About Burial Insurance (FAQ)
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Common Final Expense Insurance Questions FAQ
Life Insurance comes in a plethora of different forms, and is an everchanging practice. A different provider can offer you a wildly different policy/rate for the same exact policy. Below are some commonly asked questions we at Final Expense Benefits hear the most often.
Is Final Expense Insurance The Same As Regular Life Insurance?
It’s actually a little different! Final Expense Insurance with Final Expense Benefits exists as a supplemental whole life insurance policy that covers the final expenses of you and your loved ones. Final Expense Insurance differs from traditional life insurance as its monthly premiums are much less and there are no restrictions as to how the payout must be used.
What If I Already Have A Life Insurance Policy?
Even better! Final Expense Insurance can comfortably coexist with other policies, and even boost their efficiency. As Final Expense Insurance does not have any restriction as to how the payout may be used, beneficiaries may essentially just have extra money for whatever they need.
Are There Any Restrictions To Final Expense Insurance?
Minus the payment of monthly premiums within the 31 day grace period, there are no restrictions to final expense insurance. This means that as the beneficiary you may do whatever you wish with the payout.
What Are Graded Benefits?
A system in place to allow for the payment of benefits before the full two year waiting period. An example of graded benefits would be receiving 30% of the death benefit if death occurs within the first year, 70% second year, and full benefits after that two year period.
What Is A Waiting Period?
Essentially this is a period of time you must wait before receiving full death benefit. If death prematurely occurs during this waiting period, you will receive a percentage of all premiums paid back to you.
What Does It Actually Mean When Insurance Is A Permanent Policy?
This means that the policy remains in force throughout the remainder of your lifetime, so long as premiums are made consistently and on time. This is also known as a whole life insurance policy.
What Are The Different Types of Permanent Life Insurance?
- Whole Life – Premiums are locked in for life, providing you with permanent coverage at a fixed rate so long as premiums are paid in a timely manner.
- Universal Life – Universal Life Insurance is the most flexible insurance type there is, allowing for you to pay at your own pace, as well as allowing users of this policy to withdraw from the policy at any time.
Variable Life – Similar to Universal Life Insurance, or Indexed Universal Life Insurance, Variable life gives users the freedom to invest their policies value into an active stock exchange.
Do I Really Need Life Insurance?
We’d recommend asking yourself, “could I cover final expenses right now?” and keep in mind, final expenses on average are over $8,000 in america. If you answered no, then we’d recommend life insurance.
Can I Still Get Coverage If I Have A Serious Health Condition?
Yes, although your rate will more than likely increase as a result. Some insurers cater to different health conditions/habits. For example, Americo offers a very competitive rate for those that smoke, sometimes comparable to a non smokers rate.
Does Life Insurance Cover Suicide?
In some cases yes. The exceptions include if the policy has graded benefits or a contestability/suicide clause, as this will prevent payout if death prematurely occurs.
What Is Universal Life Insurance?
A policy type designed for flexibility. Universal Life Insurance is a type of permanent life insurance that can be changed or withdrawn at any time with no stipulations. There’s also indexed universal life insurance that allows those to participate in an active stock exchange.
Can I Get Life Insurance After Filing For Bankruptcy?
Yes, although you will need a court-ordered release to free you from obligation before a life insurance policy will accept you again.
What Is Underwriting?
Underwriting is the procedure utilized by insurance providers to gauge the overall risk you pose to the company. Underwriting comes in many forms, sometimes as simple as a medical questionnaire, and sometimes as complex as a complete medical exam.
What Are Riders?
Riders are essentially add-ons one may apply to their life insurance policy. They are not individual policies themselves, but rather additional clauses placed onto your policy. For example, AD&D (accidental death and dismemberment) protects policyholders from specific serious injuries such as the loss of a limb, paralysis, or blindness to name a few.
Does Final Expense Insurance Offer Riders?
Most of the time yes it does. With AD&D (accidental death & dismemberment), Accelerated Death Benefit, and child term riders being some of the most common types.
What If I Die Without Life Insurance?
Nothing happens as a direct result of your lack of life insurance. It’s not against the law to not have life insurance. The implications of not having health insurance, though, mean that your family/beneficiaries will have to cover funeral/final expenses out of pocket. Funeral expenses on average can reach $10,000 as of 2022, and this doesn’t even include extra features one may wish to have in their funeral.
Is 100% Guaranteed Acceptance Actually Real?
Yes, although there is a catch. Insurance providers will automatically place you as a high risk applicant if you apply for guaranteed acceptance policies. Your monthly premium will be higher as a result of you being labeled as high risk.
What’s The Difference Between Term and Whole Life Insurance?
- Term Life Insurance – exists in terms, usually in 5-10 year increments. In most cases, term life insurance can be converted to permanent coverage.
- Whole Life Insurance – permanent coverage that lasts for the remainder of one’s lifetime so long as premiums are paid in a timely manner.
Are Life Insurance Payouts Taxable?
Because Life insurance proceeds are not required to be included into your gross income, they are not taxable.
What Is The Best Life Insurance Policy?
In most cases, the “best” life insurance policy is a term policy, as they provide you with the most lucrative rate and the ability to convert your coverage to permanent coverage at any time.
Does Life Insurance Cover Funeral Costs?
Yes, and then some. Whole Life Insurance policies often come with $50,000 in coverage or more, with Final Expense Insurance coming in at $25,000-$50,000. This is easily going to cover the cost of a funeral – even the most expensive kind.
Can I Cancel My Life Insurance Policy?
Yes, although you won’t receive your premiums back unless you do so during the initial cancellation period of 31 days.
How do I choose a cost effective plan?
On average, a funeral cost $10,000 or more. Depending on your final wishes, your family could spend tens of thousands of dollars. For even as little as $1 per day, you can help your family with the burden of your funeral costs. Our licensed agents and field underwriters are at your disposal to work with any type of budget.
How Are Life Insurance Companies Rated?
By third-party organizations like JD power, AM’s Best, and the NAIC. These organizations use ratings to compare and contrast the different aspects of insurance providers.
Can I Have More Than One Life Insurance Policy?
Yes, there are no regulations stating that you cannot have multiple life insurance policies from different sources.
Does Final Expense Insurance Have a Cash Value?
Yes, as it’s a whole life insurance policy there is a cash value associated with your policy. There isn’t an immediate cash value, though, as the savings component has to accrue.
Why Is There Life Insurance For Children?
It’s important to note that in most cases, the life insurance policy purchased for a child isn’t purchased to protect against untimely circumstances of final expenses for the child, but rather as an investment for the child’s life in the future.
What Type Of Life Insurance Should I Buy?
This depends on your circumstances. Term policies are great for those in good health, Whole Life Insurance excels in providing protection for life, and variable/indexed life insurance specializes in combining your coverage with the stock exchange, potentially producing the greatest final profit.
How Long Will I Need The Policy?
No one knows, but, life insurance is to cover expenses in the event of untimely circumstances. We’d argue you’d want life insurance for the remainder of your lifetime if possible, or for as long as you can maintain it.
I Have a Primary Care Physician Already, Are They Covered In My New Policy?
This is important to discuss with your licensed agent. Not all pcp’s have the same network of insurance providers, so if your new policy is not involved with the network then you will have to find a new pcp if you wish to stay covered. It’s very easy to confirm this information beforehand, though. Simply call your pcp and double check.
But What About You? Whose Final Expense Benefits?
What Are You?
An independently owned insurance brokerage firm.
What Is An Insurance Brokerage?
An insurance brokerage is an organization that is licensed and specializes in selling insurance. Brokerages work with many different insurance companies to insure you receive the coverage and competitive rate you deserve.
What’s The Point In Utilizing an Insurance Brokerage?
The main three benefits involved with a brokerage are as follows:
- You get your own agent that’s dedicated to you and your insurance needs. Their expertise lies within their ability to maneuver the insurance space to provide you with the most lucrative
- A brokerage simplifies the process and does the heavy lifting for you, so you don’t have to bother yourself with learning the insurance process from scratch.
- No cost associated with a brokerage – you’d get the same monthly premium whether you use a brokerage or the insurance provider directly.
What If I don’t know which policy I need?
That’s where Final Expense Benefits comes in. We enjoy simplifying the process for you, for your and Final Expense Benefits’ own sake.
Do We Share Information With Other Organizations?
We do not. In no cases will you receive calls from anyone other than Final Expense Benefits (or one of Final Expense Benefits’ immediate providers) if you provide us with your information. Rest assured, your data is safe and secured.
Are You Owned By An Insurance Company?
No. We are an independent organization with our own goals and motivations. We enjoy building genuine relationships with Final Expense Benefits clients and we take pride in providing those that utilize us with outstanding coverage options and exceptional service.
How Do Your Agents Get Paid?
Final Expense Benefits agents are provided with a salary. We choose this route as it encourages agents to form genuine relationships with those that call in, rather than shadily trying to do anything in their power to get a sale.
Do I Lose Money If I Buy From Final Expense Benefits?
No, your policy would cost the same regardless of how you got it. Brokerage firms do not cost more to utilize, as that would defeat the purpose of their existence. You wouldn’t want to utilize this tool if it lost you money in the long run.
Do You Offer Customer Support During Claims Processing?
Yes we do! Give us a call for any policy related questions, even if you don’t plan to buy.
Final Expense Benefits is available M-F 8:30AM-5PM EST. 1(866)311-4338
How Many Providers Do You Work With?
We work with over 15 providers so that you may have a wide selection when comparing coverage options.
We at Final Expense Benefits partner with over 20 carriers, with:
Being some of the ones that stand out among the crowd.
Reduce the stress involved with life insurance and let us do all of the heavy lifting for you.
You can reach us at 1 (866) 311-4338, and we’re open from 9-5, Monday through Friday.
How do I Pay for a Funeral and other Arrangements?
We need to be aware that our families are responsible for covering the costs of our funeral bills. We need to look at our budgets before calling funeral homes. See what you can comfortably afford without risking money for everyday needs. This budget will help in deciding the cost and face amount of your Final Expense coverage
How much does cremation Cost?
The average Cremation Cost is between $4,000 and $7,000 depending on the type of Cremation. Since the 1980’s funeral costs have steadily been rising due to inflation. Those who don’t plan ahead could easily pay more than intended. Thankfully, with burial insurance these expenses can be covered for as little as $1 per day.
Do Funeral homes offer burial insurance?
Final expense insurance is purchased through an insurance company or with the assistance of an agent, such as the ones here at FinalExpenseBenefits.org
What if I'm a Veteran? Does the VA cover my funeral?
Even if you qualify for Veterans’ benefits, a large sum of funeral costs could still be left over. If you’re a veteran, burial benefits culminate at $2,000 for a service related death. As mentioned above, funerals on average are $10,000. You can fill the gaps with a flexible final expense policy.
does social security cover my funeral?
Unfortunately, Social Security barely cover and final expenses or burial cost. Social Security provides only $255 to a surviving spouse or child to be used for funeral costs.
Still have Questions?
At FinalExpenseBenefits.org we understand that the world of life insurance and final expenses can be complicated. We want to ensure you understand all the nuances of ever plan that is available to you. Click the button below to get your FREE burial insurance quote and give your family peace of mind today!
