Are you worried about finding the BEST insurance carrier? Not everyone agrees as to which carrier is the best— so which insurance company REALLY is? The answer below may surprise you.
In this article, we'll give you an honest take on that question and more.
What Is A Final Expense Policy Exactly?
Final Expense insurance aka burial or funeral insurance is a whole life insurance policy with a smaller death benefit, and is easier for you to get approved for, than traditional whole life insurance.
The policies pay out the benefit money to your beneficiary typically within 48 hours which makes them ideal for funeral, burial, cremation, and end of life expenses.
The price of the policies are locked-in for life and never increase, the benefit money will always be there as long as the premiums are paid, and you can never be dropped due to health conditions.
They're also called 'Simplified Issue' meaning you don't have to undergo a medical or physical exam to be approved for the policy.
Each insurance carrier will charge you differently for various health conditions. While one company may charge you for having a specific health condition, another company will NOT charge you extra.
Here is an example – a person with COPD could be denied or could be given a 2-year waiting period, or could be given immediate coverage.
What Types Of Insurance Programs Are Available?
are typically three (3) main policy types offered by any given insurance carrier:
Level (or Preferred) Benefit: The lowest-cost option with coverage that begins immediately.
>Graded (or Modified) Benefit: This option has higher premiums than a Level Benefit AND a delayed payout during the first 2-3 years, depending on the insurance carrier.
Guaranteed Issue (GI) benefit: The highest-priced option that comes with a 1-2 year waiting period on the benefit payout, depending on the insurance carrier.
Graded and Guaranteed Issue (GI) plans cost more than Level plans and comes with a waiting period. The length of the waiting period depends on your health conditions and the company you're applying to, but a 1-2-year wait is the most common.
The beauty of these programs is that nobody can be denied a policy, and the benefit amounts range from $2,000 - $40,000.
Here's What You Need To Know
And The Best Insurance Carrier Out There Is…
The #1 Final Expense insurance company is... the one that BEST fits YOU and YOUR needs!
People often rate insurance companies in terms of pricing and/or their underwriting (risk assessment) guidelines, but the company that is lowest for one individual may not be the lowest option for another.
Consider this scenario:
Mrs. Jones wants a $10,000 burial policy to pay for her end-of-life expenses. She is 66 years old, lives in Iowa, and has COPD (Chronic Obstructive Pulmonary Disorder).
Her neighbor, Mrs. Sanchez, also 66 years old, is a diabetic on insulin, but doesn't have any diabetic complications.
Will they pay the same cost or monthly premiums? No, they won't. Mrs. Jones will pay $52.48 a month (MUTUAL OF OMAHA), and Mrs. Sanchez will pay $40.79 a month with (LIFESHIELD NATIONAL INSURANCE CO.)
These figures come from out of nearly 3 dozen insurance carriers, and currently represent the lowest costs available. Their pricing is dependent on their age and their health conditions and both factors determine the policy type and the cost they will pay.
How To Find The Insurance Carrier Right For You
When applying for an insurance policy, here are five (5) key factors you want to make sure your policy does for you:
Your monthly rates are locked in for life.
The policy is guaranteed never to expire.
The benefit amount is guaranteed to never decrease.
The policy builds cash value (you can potentially borrow from in an emergency).
Comes with an *Accelerated Death Benefit Rider (usually added free-of-charge).
An *Accelerated Death Benefit Rider is also called a Living Benefit. It's money that can be withdrawn from your insurance benefit that can used in cases where the insured has a Chronic, Critical, or Terminal Illness diagnosis, depending on the carrier.
What Makes A Good Final Expense Life Insurance Company?
A good Final Expense life insurance company is one that has a proven track record and is financially stable. Financially strength ratings for life insurance companies are readily available through ratings agencies like A.M. Best http://www.ambest.com.
When shopping for a policy, it's also wise to use an insurance brokerage that compares prices with multiple carriers to get you the best priced product for you and your particular case.
Ultimately, a good Final Expense life insurance company is one that has been around for awhile, is financially stable, and offers YOU the best price. Companies with durability lends to their credibility and helps give a sense of well-being that they will continue to be there to protect your loved ones when you're no longer around.
Another way to evaluate an insurer is to look at their customer satisfaction scores. You can get an indication of a company's reputation through customer complaints filed with state regulators, which you can search at on the National Association of Insurance Commissioner's https://content.naic.org.
In the end, all life insurance companies will offer you different premiums based on your age and health conditions, so it's important to look at as many companies as possible to find the one that is right for you.
How Can AffinityQuotes Assist?
If you're looking for a life insurance policy, we can determine if you need a Level, Graded, or Guaranteed Issue policy and then find the BEST insurance carrier for you.
Here’s why we believe that…
We're an independent agency representing many different insurance carriers. We're not obligated to any one carrier which gives us the freedom to shop the best deal for YOU.
AffinityQuotes shops dozens of insurance carriers to find the one that will accept you based on your specific situation.
Call 855-400-7766 to see what a licensed AQ agent can do for you.
We'll happily answer all your questions for you at no-cost.