How to Find the Right Final Expense Insurance for Your Aging Parents?

The final insurance policy covers the financial needs of you and your family after your parents pass away. It will help you prepare for the passing away of your parents financially.

Insurance for seniors

Funeral expenses can be as high as $8,000. For many families, it is not a manageable amount. And, if your parents were a caretaker to your child while you were working, it can add another financial burden on you.

For securing you and your family from the unforeseen financial crisis, it’s wise to have an insurance policy for your parents. Gary P. Cubeta from Insurance for Final Expenses suggests some of the best final expense insurance options you can choose for your parents.

Term life insurance

A term life insurance pays the least, but it is also the most reasonable. The length of the term life insurance lasts between 10 to 30 years. After the completion of the term, it expires.

The policy covers the basics like paying out a death benefit after your parents die while the policy is in force. It is the most affordable policy compared to other life insurance options, but it may not be available if your parents are past the age of 85, even if you took the policy before.

Whole life insurance

Whole life insurance, like permanent life insurance, lasts for the entire life of the policyholder. This makes it costlier than a term life insurance policy. It also comes with a cash-value component where you are required to put a certain amount for a limited period. This policy is seen as the best final expense insurance as it gives the benefits of traditional life insurance and builds cash value.

Final expense life insurance

Experts consider it as one of the best policies to purchase. This policy is designed to cover the funeral expenses as it pays a final death amount. Unlike the term and whole life insurance where your parents have to apply for the policy, you can apply for this policy on your parent’s behalf.

However, they have to give consent. It is also known as burial insurance and is more like permanent insurance that will last till your parent’s death, given you have paid the premiums on time. They can get it after answering some medical questions, but it can be rejected in a terminal illness or condition.

Guaranteed issue life insurance

This policy is ideal if all the other insurance options are closed for your parents due to medical reasons or age. This policy also accepts if your parents have a terminal illness. Examples of such conditions are dialysis, hospitalized or bedridden, needing an organ transplant.

Your parents may purchase a guaranteed issue in serious conditions. Usually, this policy has considerably higher premiums as the insurers accept high-risk applicants. They have a waiting period of two years, and if your parents die within the waiting period, only the premiums are returned.

Tips To Choose the Best Final Expense Insurance

Once you’ve decided on the policy you want, the next step is choosing a reliable and trusted insurer. Here are some tips that you must consider when buying a final expense policy for your parent.

Good Ratings

Make sure you check the financial status of the insurance company to meet their financial obligations when the time comes. A financially stable company will pay for the policy it has underwritten. The better the company and its reputation in the market, the more protected your insurance benefits are.

Premiums

Make a list of all the options you have and compare their premiums to ensure that the amount you’ll be paying in premiums is worth the risk. Also, different companies have different premiums, so you should compare them and choose the insurer that can give you the best final expense insurance.

Covered Health Conditions

You must pick the policy based on the health conditions they cover. Final expense insurance does not need a medical test, but it does not cover certain illnesses. Similarly, your parents will have to undergo a medical examination in whole life insurance. Companies have a list of illnesses that they don’t cover in their policy. Make sure you check the list with the insurer so that you can make a better decision.

You should buy final expense insurance for your parents as soon as you realize the need for it. As your parents age, the premiums go higher. Even, they might get some illnesses, which they never had. Health plays an important role in how much you’ll be paying in premiums. So, instead of waiting, do it if you wish to insure your parents.

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