If you are thinking about investing in a final expense life insurance policy to help your loved ones pay for your end-of-life expenses, you may be interested to learn about the most common requirements for purchasing one. There are many insurers that provide this form of insurance, and each insurer offers a variety of policies.
Policies may include different coverage, benefit amounts, premium amounts, requirements, application methods, and so on. Since policies and insurers can be vastly different, it’s often a good idea to compare many final expense insurance quotes before making a final decision on enrollment.
Like traditional life insurance, final expense life insurance is typically offered in one of two types of policies:
- Guaranteed issue
- Simplified issue
Guaranteed issue final expense insurance tends to be more accessible than simplified issue policies. This is because you can obtain a policy regardless of your medical history or current health conditions.
Simplified issue final expense insurance provides coverage for individuals who meet minimal eligibility requirements via a health questionnaire. That means that certain illnesses and medical conditions could disqualify an applicant from receiving a policy.
However, unlike traditional life insurance, a medical exam is not required to get coverage for either type of final expense life insurance. While simplified issue policies require applicants to meet medial-based requirements, the applicants do not need to undergo a physical exam.
Another reason to compare final expense insurance companies is because some insurers might offer more in-depth coverage or lower premiums based on your current health status. For example, if you’re not a smoker, you may have a lower premium compared to a person who is a smoker. Some insurers consider you at a higher risk for certain health conditions if you smoke. Additionally, it can be difficult to obtain either type of policy if you have a terminal illness.
Many, but not all, insurers require applicants to meet certain age-related requirements. It’s common for final expense life insurance policies to only be available for purchase if you are between the ages of 50 and 85 years old.
Ready to purchase a policy? One way to find the policy that best suits your needs is to shop around with different insurance companies. Not all insurers are the same; the only way to get a comprehensive comparison is by taking a look at different policies through different insurers.
You can review insurance policies online, by contacting insurers directly, or through an insurance broker. Be sure to ask the insurer about any policy details you don’t understand or that are unclear before enrollment to make sure you understand your policy’s requirements, coverage, benefits, and how your loved ones can file a claim.