Final Expense Insurance for Seniors over 70

Understanding the nuances of final expense insurance for seniors over 70 can be a pivotal step in end-of-life planning.

As we age, financial security becomes paramount, particularly when it comes to ensuring that funeral and other final expenses do not burden our loved ones.

This article delves into different coverage options, compares costs, evaluates providers, and elucidates both the eligibility criteria and application process, making it easier for you to make an informed and practical decision.

Guide to Buying Final Expense Insurance for Seniors over 70

Quick Review

Final Expense Insurance for seniors over 70 is a type of life insurance designed to cover end-of-life expenses, such as funeral costs, medical bills, and other outstanding debts.

It typically offers smaller coverage amounts compared to traditional life insurance policies, making it more affordable for older adults.

This insurance often features simplified underwriting, meaning applicants may not need to undergo a medical exam, making it accessible even for those with health issues.

The primary goal is to provide financial peace of mind to seniors and their families by ensuring that final expenses are covered without burdening loved ones.

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Final Expense Insurance Explained

Final expense insurance, also known as burial or funeral insurance, is specifically designed to cover the costs associated with end-of-life expenses like funeral, burial, and medical bills.

Policies for seniors over 70 typically fall into two main categories: simplified issue and guaranteed acceptance.

Simplified issue involves answering a few health questions but does not require a medical exam, and guaranteed acceptance ensures coverage without any health questions or exams, albeit at a higher premium.

Amount of Insurance

Coverage limits for final expense insurance usually range from $5,000 to $25,000.

According to the National Funeral Directors Association (NFDA), the median cost of a funeral with a viewing and burial was $7,640 in 2019, with prices expected to rise.

Therefore, understanding policy limits and what’s covered can help you select a plan that aligns with your anticipated expenses.

Limitations

When it comes to limitations, most final expense insurance plans have a graded death benefit during the first two years of the policy. This means if the policyholder passes away within this period due to non-accidental causes, beneficiaries might receive only a portion of the death benefit or the premiums paid plus interest. Understanding such limitations is crucial in making an informed choice.

Compare Pricing

Comparing costs across various final expense insurance plans involves understanding premiums, payment options, and potential discounts. Premiums can range highly based on age, health conditions, and coverage amount.

For instance, a $10,000 policy might cost a 70-year-old non-smoker around $50 to $80 per month, but rates can significantly increase for those with health issues.

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Flexible Payment Options

Fortunately, many insurance providers offer flexible payment options including monthly, quarterly, semi-annual, or annual premiums.

Some even offer discounts for paying premiums annually or for automatic payments. It's wise to inquire about these options to find a payment structure that suits your budget.

Evaluate Insurance Companies

Evaluating insurance providers is vital. Top companies like Mutual of Omaha, MetLife, and Colonial Penn are often recommended for their reliability and customer service.

Checking reviews, ratings from J.D. Power or AM Best, and customer testimonials can provide insights into the quality of service and claims process, ensuring you choose a reputable insurer.

Reviews from organizations like the National Association of Insurance Commissioners (NAIC) or the Insurance Information Institute (III) can also be incredibly informative. They often publish complaints ratios and other data that help flag companies with a history of poor service.

Mutual of Omaha

• Up to $25,000 of coverage
• No physical exam and no health questions asked
• Guaranteed Acceptance ages 45-85 (50-75 in NY)
• 30 day money-back guarantee.
• Two year limited benefit period

Met Life

• Rates as low as $10 per month.
• Guaranteed Issue for ages 45-75.
• Up to $20,000 of coverage available.
• No medical examination required.
• Two year limited benefit period.

Colonial Penn

• Exclusively for ages 50 - 85 (most states)
• You cannot be turned down because of your health
• There are no health questions asked and no physicals to take
• Two year limited benefit period

Eligibility for Coverage

Eligibility criteria can vary between providers. Typically, final expense insurance for seniors over 70 is available to individuals aged 45 to 85.

However, specific policies may have age limits or health-related criteria that could affect eligibility.

Simplified issue policies might exclude those with severe health conditions, while guaranteed acceptance policies, though costlier, ensure coverage regardless of health status.

Qualifying for Coverage

Understanding whether you qualify involves examining these criteria closely.

Generally, if you fall within the age range, there's a policy that can cater to your needs, even if you have pre-existing health conditions. This inclusiveness is part of what makes final expense insurance a go-to solution for many seniors.

Application Process

The application process for final expense insurance is relatively straightforward compared to other forms of life insurance.

For simplified issue policies, you'll need to answer a few health-related questions.

Guaranteed acceptance plans waive this requirement, though they may ask for basic personal information and payment details.

Paperwork Needed

Documentation needed typically includes proof of identity, such as a driver's license or passport, and sometimes financial details depending on the provider's requirements.

Most applications can be completed online or via a phone call, making the process convenient for seniors.

Approval for Coverage

Once the application is submitted, approval times can vary. Simplified issue policies might take a few days to a week, while guaranteed acceptance plans often provide near-instant approval.

Be sure to check if the insurer offers a "free look period" — usually 10 to 30 days — allowing you to review the policy details and cancel for a full refund if you're not satisfied.

Financial Planning

Effective financial planning involves not only understanding these insurance aspects but also being aware of the broader picture, such as existing life insurance coverage, savings, and potential end-of-life costs.

Tools and resources from organizations like the American Council of Life Insurers (ACLI) and Life Insurance Marketing and Research Association (LIMRA) can be incredibly helpful in this context.

Example of Final Expense Insurance

One anecdote that resonates with many involves a senior, let's call her Jane, who opted for final expense insurance at age 72.

Despite having some savings, Jane’s primary concern was leaving her family with enough to cover her funeral expenses without dipping into their pockets.

By evaluating her needs and comparing costs, Jane found a $15,000 policy with fixed premiums that provide her peace of mind knowing her loved ones won't face financial hardship.

Make Informed Decision

To make an informed decision, seek free quotes from multiple providers. Many credible insurers offer online tools to get quotes instantly. This helps you compare costs and benefits side-by-side. Don't hesitate to request assistance from insurance agents who can guide you through the comparisons and explain the nuances of each plan.

Choosing The Best Policy

Choosing the right final expense insurance policy can provide immense peace of mind.

By taking into account coverage options, costs, provider reliability, eligibility criteria, and the application process, you can ensure that you select a policy that aligns with your financial situation, affording you the tranquility every senior deserves.

Summary

Ultimately, having a final expense insurance policy enables you to plan ahead, ensuring that end-of-life expenses don't come as a financial burden to your family.

So, take the next step today — request a free quote and secure the right policy for your needs. Your family will thank you for it, and you'll rest easy knowing your final expenses are covered.

Final Expense Insurance Quotes

Top Pick – Mutual of Omaha

Mutual of Omaha offers guaranteed acceptance whole life insurance for people age 45 to 85. Choose $2,000 up to $25,000 of coverage. Rates start as low as $8.84 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. START HERE to get a FREE Quote.

• Your life insurance policy comes with a 30 day Risk-Free, Money-Back Guarantee