Final Expense Insurance Policy Myths

final expense insurance policy myths

A final expense insurance policy might sound like a necessity. In many cases, it is. There are many reasons why you might need one, and many reasons why you may not. We will explore those reasons in this article.

 

If you are above the age of 50, you may be considering final expense insurance. There might be reasons you think you need one. There may also be reasons that might cause you to think you do not. There are many misconceptions about getting a final expense insurance policy, and we are here to clear them up and discuss the reasons in detail.

I Am Healthy, So I Do Not Need a Final Expense Insurance Policy

You might be in excellent health. Most of us, when healthy, do not think much about the end of our lives. It is human nature to ignore the topic of death unless it is imminent. However, a final expense insurance policy is about planning for things that may occur. Roughly 15 million new cases of cancer are diagnosed every year in the United States. Another 33.2 million Americans are diabetic. 655,000 Americans die of heart attacks every year. No one plans for this. We do not like to think about it.

Many of these Americans did not have a final expense insurance policy when they passed. Their family members were saddled with the staggering costs of a funeral, which averages about $10,000. In addition, there are unpaid bills that need to be paid, and other costs that are never really considered. All of this means that while you are currently healthy, if you are over 50, you should at least look at obtaining a final expense insurance policy.

I Have A Chronic Illness, So I Will Not Qualify for a Burial Insurance Policy

Chronic conditions, such as diabetes or fibromyalgia, are painful conditions. Diabetes can be life-threatening if not managed properly. Those with a chronic condition often believe that they can not qualify for a final expense insurance policy.

Unlike traditional life insurance policies, final expense policies do not have health examinations. You will not have to go see the doctor for a check-up. You simply must answer questions over the phone. If you do have a chronic condition, you are in luck. Most of these conditions do not disqualify you for coverage.

Some chronic conditions, like fibromyalgia or neuropathy, are not even discussed, as these are not high-risk health conditions. In other words, many health problems you may be experiencing will not disqualify you for a policy. You should speak with an expert to help you navigate the process.

I Smoke, So A Final Expense Insurance Policy Will Be Too Expensive

While smoking is an expensive habit, and not great for your health, it might not mean that you cannot afford a final expense insurance policy. You will most likely be charged a smoker’s rate, which is higher than a non-smoker rate.

However, if you can honestly say that you have not smoked or used any tobacco products in the past year, then you can qualify for a non-smoker rate. This is excellent motivation to quit, or to stay stopped. In addition, you will feel better and your cardiovascular health will improve as well.

If you enjoy smoking and plan to continue to smoke, there are some insurance companies that will not penalize you with a smoking rate. There are a few others who will ignore cigar smoking, pipe smoking or chewing tobacco.

The smoking discussion is a good time to bring up the importance of honesty. When answering questions, it is important not to lie to the insurance company. If you are caught lying, you can be denied. Always be honest with the insurance company about your smoking history. A Benefit Choice Direct representative can help you in answering the questions that will be asked.

I Have A Savings Account, So I Do Not Need a Final Expense Policy

While having significant savings ($15,000-$40,000) might help, it is also helpful to have a final expense insurance policy in place, for several reasons.

One major reason is the simplicity. Final expense insurance companies, like Gerber, work directly with funeral homes and cemeteries to pay out your benefit directly. This is especially helpful in a day and age when families live further apart and cannot always be available to handle arrangements.

Another great reason to have a final expense insurance policy in place is that your final wishes will be respected. Because the insurance is yours, you have the final say in how your funeral is planned, where you are buried, and what bills get paid off at the end. This reduces the stress many families experience after the loss of a loved one.

A final expense policy also ensures that the rest of your assets can be distributed according to your wishes. Creditors will be paid off, and therefore will not come calling after your death, forcing your children to sell off your home or other property to pay credit card, medical, and other bills.

There are plenty of reasons why a final expense insurance policy makes sense. To find out if it makes sense for you, speaking with an expert can help. Contact Benefit Choice Direct today to get an honest, no obligation assessment.

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