|Posted on November 15, 2012 at 11:15 AM||comments (1)|
What is Senior Life Insurance?
Senior Life Insurance is whole life insurance that is mostly purchased by seniors to cover the costs of funeral expenses, and other final expenses when they die. This type of life insurance is still commonly known as final expense life insurance or burial insurance, but “senior life insurance” is a more pleasant term to hear. A typical senior life insurance policy is from $10,000 to $20,000 of insurance protection. Smaller coverage amounts are also used to cover a lower cost cremation service.Consider a senior life insurance plan as a mini whole lifeinsurance policy with a specific purpose – covering final expenses. Therefore this type of insurance has the same benefits of a whole life insurance policy 1) can keep the insurance your whole life 2) your policy builds cash value 3) you canborrow against the cash value if you need to if the cash value is large enoughand 4) the death benefit is paid out toyour beneficiary tax-free.
Senior life insurance has gotten very popular since the widespread use of term life insurance. It used to be that young families would buy a large whole life insurance policy to cover their needs and then they kept it in force until they died. Whole life insurance was much cheaper at this time and so it was used in this way. Since the introduction of term life insurance,families have started buying term life insurance in their younger days to cover children, college expenses, mortgage, and other large expenses. Once the caregivers are older and their term policies have ended, they find a small Senior life insurance policy to cover their current needs. This is a muchbetter way to use life insurance because you are changing your life insuranc eas your needs change, so you are never over-insured, and it is less expensive.
Cost of Burial
Most advertising you see on television from insurance companies like Colonial Penn and AARP or print materials will suggest the price of $6000 for the average cost of a funeral. The averagecost of a funeral, however, when all things are said and done is more like $10,000. This is because the price given in ads and sometimes from the funeral director does not include some hidden fees. The total cost of an average funeral can be broken down into 3 parts: the funeral director fees, the cemetery services, and the headstone. $6000 may cover the funeral director but between the cemetery and the headstone you may be looking at another $4000 dollars.
Prepaid Burial Plans and Senior Life Insurance
There are advantages and disadvantages of using PrepaidBurial Plans over Senior Life Insurance in order to pay for your final expenses. A prepaid burial plan ensures that your wishes will be specificallylaid out on how you want your burial service to proceed. This allows your lovedones to be free of having to plan your service while they are grieving.However, if your burial plan is not fully paid for when you die, or the cost ofservices increased significantly there may be some overages that your lovedones would still have to pay. Also, if you move your burial plan may not betransferable. The cost of canceling your prepaid plan could be up to one thirdof the funeral service cost. A Senior life insurance policy can cover your final expensecosts from day one and gives you the flexibility you need for the changes inlife. It is important with a life insurance policy that you let your loved onesknow in your will what your wishes are concerning final wishes.
How much does Senior life insurance cost?
Senior life insurance can be very affordable. Of course, theyounger and healthier you are when you decide to purchase a policy the less youare going to pay. The cost of buying a Senior life insurance policy is lessthan getting a regular whole life insurance policy and selecting a low death benefitamount. To get a Senior life insurance quote click here.
Do I have to qualify?
The short answer is yes. With all life insurance plans thereis always some level of qualification necessary to be issued a life insurancepolicy. With Senior life insurance you have the option to select a simplifiedissue Senior life insurance policy or a guaranteed issue Senior life insurancepolicy. Simplified issue Senior life insurance policies ask just a few medicalquestions to determine whether or not you will qualify and there is noparamedical (blood and urine)to be done. Guaranteed Issue Senior life insurance policies ask even less medical questions (usually 3 or 4) to determine if you qualify for a life insurance policy.If you are very healthy and take very little to nomedications, and you want to save money, your best choice would be to select a policy with paramedical underwriting. The more the insurance company is comfortable about your health outlook the lower your premiums are going to be.
This is the reason is important to buy Senior life Insurance from a Final Expense broker like www.burialinsurancerate.com You can compare prices with over 20 companies and find the best rate for your age and health!
If you don't want the hassle of going through medical underwriting or you may have a few health issues you feel the insurance company may pay attention to, your best bet may be a simplified issue life insurance policy. Just answer a few questions and the insurance company will take your answers, do a little searching on your medical history, and then give you ananswer “yes” or “no”, usually within 24 to 36 hours.Guaranteed issue is an option when there are major concerns about your health situation so the less questions the better. Usually, there are 4 questions to answer in the paperwork, and the insurance company againwill make a determination on whether you qualify or not based on your answersand medical history.
|Posted on May 28, 2012 at 10:55 PM||comments (0)|
After you die you won’t have to worry about your unpaid bills.But somebody will. Let’s face it: Dying is expensive. The average funeralcosts $6,500, according to the National Funeral Directors Association, andthat doesn’t include cemetery expenses and other items that can push thebill above $10,000. In addition, the average American owes nearly $9,846 in credit card and other debt, according to the Federal Reserve.And that doesn’t include what’s due on your home mortgage. Throw in probate costs,taxes and other legal and estate matters, and it all adds up to a financial burden that could take years to pay off. Final expense life insurance can relieve your family of that concern, allowing them to mourn and to tie up loose ends without worrying about where the money will come from.
"Having final expense insurance helps ensure that your death won't result in financial hardship for those you love"
Understanding the Basics
Final expense insurance is a life insurance policy written for a specific purpose: To cover your funeral costsand other short-term debts you leave behind. Most policies are available in face amounts typically rangingfrom several thousands of dollars up to a maximum of $50,000 or $75,000 – much less than a standardlife insurance policy. That’s because these policies are only intended to cover final expenses and not longerrange expenses like ongoing livingcosts or college or retirement funding.If you’re trying to determine whether final expense insurance is right for you, here are some key features and considerations to keep in mind:
• Permanent Coverage: With very few exceptions, final expense insurance is whole life insurance, a form of permanent life insurance.Unlike term insurance, which only pays a death benefit if you die during the “term” of the policy, usually 10 or 20 years, a whole life policy remains in effect as long as you continue to pay your premiums
• Level Premiums and Benefits: With whole life insurance, the premiums and the deathbenefit are guaranteed to remain the same foras long as you keep the policy in effect.
• Cash Values: A whole life policy also comes with guaranteed cash values that grow over time on a tax-deferred basis. If necessary, you can access your cash account for a variety of purposes – if you’re in a tight financial spot, for example, or if you need the money for an important purchase or to supplement your retirement income. This is known as a policy loan. You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit.
• Simple Application Process: The process of applying for a final expense policy is very streamlined. Premiums are mostly dependent on your age at the time of purchase. Typically, there is no medical exam or long questionnaire. Usually you’re just required to answer some medical questions. This is called Simplified Underwriting, and it’s a nice option to have if you’re a little older or not in great health. If you're concerned that you may be uninsurable, you should consider a “Guaranteed Issue” policy. With this type of policy, if you can answer “no” to a few simple health questions, you will be issued the policy.Of course, the downside to simplified underwriting is that the cost is usually higher than what you would pay for a fully underwritten life insurance policy where the questions are more extensive and a medical exam is generally required.
• Two Types of Policies: There are two types of Final Expense policies. Immediate Full Benefit Policies are generally offered to people who have no serious immediate health concerns. The full value of these policies becomes available as a death benefit as soon as the policy is issued. Graded Benefit Policies areavailable for people who have health issues.These policies typically provide limitedbenefits during the first two or three years. If you were to die during that period, our beneficiaries would receive a percentage of the death benefit. If you live beyond that initialprovisional period, the policy would pay the full death benefit.
• Flexible Payment Options: Most companies give you the option of a single premium (anup-front, lump-sum payment) or multi-year payment plans (typically paying over 7,10 and 20 years)
Determining Your Needs
Because final expense insurance is for a specific set of needs, the amount of coverage that’s right for you depends on your own circumstances.You’ll need to think about what kind of funeral you want as well as estimate how much money will be needed to cover other final expenses such as probate, taxes, mortgage balances, car loans and other outstanding debts. The best way to do this is with the help of a qualified finl expense insurance professional who can walk you through a comprehensive needs analysis and help you choose the right amount and type of insurance.
|Posted on January 12, 2012 at 12:35 AM||comments (0)|
Funeral costs can only be as high as $ 25,000 or more likely, and incidental expenses such as medical expenses not covered by health insurance, as well as federal and state taxes and / or other bills the deceased's name can be added, having a number of families in what is already an extremely difficult and challenging time emotionally.
By choosing to purchase final expense insurance, you can save your family most of these expenses, and, moreover, this policy also lets you specify the details of funeral and burial, including the type of service and casket you prefer.According to the Funeral Directors Association national consumer interest in pre-planning of funerals has been increasing steadily over the past 30 years, but recently, perhaps as many baby boomers who are near the retirement age, the industry has focused on the pre funding of such ceremonies. Traditionally, funerals were funded trusts, which are especially complicated fix, but not lead to tax liabilities and may be complicated if the purchaser of a trust decides to move out of state.To combat these problems, some consumers create what is called final expense insurance policies of expenditure, ie, complementary policies beyond its basic policies of life insurance with coverage limits of small, sometimes known as the face amounts usually about $ 10,000 to cover funeral expenses.
The American Association of Retired Persons AARP reports that funerals and burials of high rank among the most expensive purchases that older Americans do. For an adult burial, the average cost of $ 4,000 to $ 5,000, not including overtime or funeral expenses.On land the funeral can cost an additional $ 3,500 or more, depending on the state in which the burial takes place, and other factors.What all this means is that the traditional amount reserved $ 10,000 in trust for funeral and burial expenses is simply not enough, and pay a typical funeral may require funds of the deceased life insurance. Unfortunately, this trend is becoming too frequent.
Final expense insurance policies are individualized expenses, which usually means that anything can be included in them, unless your policy is subject to a specific dollar amount, the highest of which are typically $ 25,000.The types of services and products that can be selected vary according to the policy, as well as by the state, but generally, you can expect to be able to pre purchase and pre-payment of the following: cremation, casket or urn, tombstone , flowers, fabric, hearses and other funeral vehicles, embalming is not required by law unless a public exhibition, but many people opt for it, in any case or covering burial marker from the grave, and digging and filling the grave.