Final expense insurance policies are designed to cover burial costs. Often, the policy will pay for a cremation, or cremation expenses, as well as a plot, flowers, and personal belongings kept by the deceased. The policy may also cover estate taxes and other related costs. Policies can be used to cover the cost of debts owed to family or friends or to cover survivors' fees if the insured is no longer available to them. If you have an insurance agent, he or she may be able to provide more detailed information about final expense insurance.
There are several types of final expenses insurance policies. Most include at least some payment for the deceased's burial expenses. One type of final expense policy is called the "standard funeral and burial" policy. This policy pays for the normal costs of burial and cremation, including embalming or cremation, travel costs to the place of burial, and funeral and burial fees. In most cases, this type of policy also covers all or most of the funeral expenses, depending on how much the family pays. It may also cover expenses such as burial materials, cemetery costs, and legal expenses.
Another type of final expense insurance policy is called a guaranteed issue policy. A guaranteed issue final expense insurance policy guarantees payment of the deceased's expenses if the insured dies during the coverage period. Because most insurance companies require proof of death, usually from a physician, this type of policy requires that you submit medical records to prove your illness or death, in order to qualify for guaranteed issue. Medical records can be submitted through a third party or through the Department of Health. The medical records need to be filed within 90 days of the date of death.
Guaranteed final expense insurance policies generally have the lowest premiums among the different types of policies. However, they are the only type that offers no death benefit. Since premiums for these policies are higher than other policies, the policyholder must pay the whole face value of the policy, or the premiums plus any applicable late fees and interest, even if the policy holder does not die during the coverage period. However, there is an exception to this rule: if the beneficiary of the policy has died during the policy period, the premiums paid to the beneficiaries will be refunded to them. Check out this page to learn more about life insurance payment processing.
It is extremely important to make sure you get a final expense insurance quote from a reputable and properly functioning insurance company. Ask the insurer what happens if you are diagnosed with a pre-existing medical condition. Find out whether you will need to pass medical exams. Find out what your premium would be for this coverage. Get information about any limitations that may apply. Request a health checkup from your health insurance company before signing any agreements. Click here https://www.huffpost.com/entry/life-insurance-facts-need-know_l_5d2c00c5e4b0060b11eebd78 to get more enlightened on life insurance.