Final expense plans are, quite simply, small life insurance policies. They are designed for people who no longer need to have large policies to cover their mortgage, or the education of children still at home or the loss of income for a family breadwinner. For folks on Social Security and Medicare, those situations don’t usually exist anymore.
However, there typically is still a need for a small amount of coverage to help out with final legal and funeral expenses so that a surviving spouse or adult children won’t have to suddenly come up with a substantial lump sum, often $20,000 to $30,000. For this specific situation, Final Expense Plans were created.
They are offered in three varieties depending on a person’s health. For those in excellent health there is the Level plan and you must medically qualify for this one. Next, for those with health challenges like diabetes, high blood pressure or weight issues, there is the Graded plan which has a slightly higher premium and offers a limited payout in the first two years of the policy. And, finally, for people with more serious medical problems, there is the Guaranteed Issue plan that has no medical qualifications at all. This plan has a higher premium and, like the Graded plan, has a limited pay out during the first two years of the policy.
If you would like additional information on a Final Expense Plan for yourself or a loved one, please give me a call at 263-2194 or use the Contact Form on our website.