About 40% of all people never even bother to apply for life insurance. A deterrent for a lot of people buying life insurance seems to be the implied cost. However, the cost of a premium and the overall value of coverage is tailor calculated according to applicant information. Additionally, the younger and healthier that you are when you apply for life insurance, the more affordable it is to apply for it. The average cost of a life insurance policy is about $70 to $120 a month. An average life insurance policy can be worth $250,000 to one million dollars.
However, a lot of people do not consider applying for life insurance until they are older. Remember, the older that you are, the more expensive it becomes to apply. Still, there are many alternatives to traditional life insurance available. One of those is final expense insurance. Depending on the kind of coverage that you need, final expense insurance can be very affordable. Before we discuss the costs of final expense insurance, let’s clarify what it is exactly.
Final Expense Insurance
Final expense insurance is a version of life insurance that is dedicated mostly to paying for funeral services. This form of insurance can also be used to pay for medical bills related to advanced age and terminal illnesses. Final expense insurance can be used to accrue cash value, be leveraged for loans and name beneficiaries.
However, the target audience for this kind of insurance, the elderly and those with low incomes, usually cannot afford to pay high premiums or fees. The average final expense insurance policy is usually only about $10,000 to $25,000. While it can be used to accrue cash value or pay out benefits, that may not be the best use of this insurance. The optimal use of such a policy is as a security net to pay for funeral expense.
Final expense insurance has a simplified application process, since most applicants can’t qualify for or afford traditional insurance. There is no medical exam required. However, there may be a request of your prior medical and/or prescription history.
The only barrier to approval would be a serious preexisting medical condition. Most applicants are approved. Depending on the applicant, there may not even be a waiting period, although some policies may require a two-year waiting period.
Final Expense Insurance Costs
The earlier in life that you apply for final expense insurance ensures its affordability. Insurance issuance is based on data projecting probability of illness and/or date of death. Statistically speaking, the older that you are then the closer you are to the expiration of life.
Applicants under age 65 could pay a few dollars or tens of dollars a month in premiums. Final expense insurance applicants aged between 65 and 90 could pay anywhere between $30 to $200 a month, or more. A good policy features fixed-priced premiums so the price remains the same throughout the coverage.
Final expense premium costs are ultimately determined by relative health and age. While you may pay more for coverage relative to traditional life insurance, due to advanced age and health, it is not impossible to afford. Compare coverage plans and find the policy that suits your needs. Our service lets you get multiple instant price quotes.