Final Expense insurance is a provision made with your loved ones in mind. The common reason behind enrollment is to prepare for funeral expenses, in addition to its affordability and ease of enrollment. In Iowa, the average funeral cost is $6,995. Funeral expenses are a combination of individual costs, rather than a flat rate. Final expense insurance plays a critical role in eliminating this financial hurdle. Its average policy size reflects this, as the typical death benefit ranges from $10,000 to $20,000. With this, final expense insurance can cover all funeral costs while also having funds left over for beneficiaries to use for their personal expenses.
Who Can Get Final Expense Insurance?
Final expense insurance is among the most easily obtainable life insurance policies on the market. This is part of why it appeals to those who have a hard time getting insured due to age or ailing health. Some policies don’t require a medical exam at all.
The policies with the lowest monthly premiums and the highest death benefits favor younger, healthier individuals. A 50 year old could pay as little as $25 per month, but if that same individual were to enroll at the age of 85, the monthly premium would be $93.
While easy to get for most, getting a policy isn’t always a guarantee. You may get rejected if you:
- Are over 85
- Have a terminal illness
- Are in hospice or currently staying in a hospital
You can also get this policy even if you are enrolled in other forms of life insurance. Many get final expense insurance as a way to leave an extra $10,000 to $20,000 behind for their loved ones, since this policy is relatively inexpensive.
What Can the Death Benefit Be Used For?
One of final expense insurance’s biggest strengths is its untaxed death benefit. Your loved ones will get the exact amount you signed up for, as long as you’ve paid your premiums. And while the policy is often purchased with one type of expense in mind, it can be used for anything. There are no rules. Your loved ones can use it for their own debts. They can also use it for items they’ve always wanted, but never had the money to afford.
And this ties into another benefit – this is more than just money left behind. What you provide for your loved ones symbolizes the passing of your legacy, and that while you are no longer alive, part of you remains with the people you care the most about.
Build Your Legacy Today!
Iowa Medicare Group will help you find a final expense policy that provides the coverage and security your loved ones need. To learn more about final expense insurance and why it may be right for you, give Iowa Medicare Group a call today.