We’re providing answers to some of the most common questions about
life insurance and our Final Expense Plan. From guaranteed premiums to choosing beneficiaries, we're tackling the most important questions we've heard from Americans.
What does “no medical” mean?
No medical is a term used within the life insurance space to mean there are no medical exams required to be eligible for a life insurance plan. There are two general types of life insurance, traditional and no medical. Traditional plans require full medical exams when you apply for coverage. Before you can even know you could be eligible for life insurance, you must go through a medical exam that requires invasive tests, doctor visits and waiting for results. No medical plans require no medical exams to apply, making them a growing popular choice in today’s market.
A death benefit is the amount of coverage paid to your beneficiary after a claim is made. Death benefits are typically paid tax-free and in lump sum quantities. They are paid to your beneficiaries who can use the plan’s benefit in any way they choose. With the Final Expense Plan, beneficiaries typically use the plan’s benefit to cover the insured’s final expenses. But the benefit can also help with daily living expenses like bills, paying down a mortgage or line of credit, or help with educational costs for children or grandchildren.
What are “Final Expenses”?
Final expenses can be anything from the costs associated with your funeral to any remaining debts you have after you pass away. The plan’s benefit can cover the cost of a funeral, including the burial or cremation. Or it can take care of any remaining debts you have that you would not want to pass on to your family. These expenses can be incredibly difficult for family members to cover out of their own pocket. Without the right plan in place, you could be leaving the people who matter most to you with debt instead of lasting memories.
How do I choose my beneficiaries?
This question has no clear answer. Choosing a beneficiary is a deeply personal choice that can be difficult to make at times. It is a choice that only you can make, and it must involve your family to a certain extent. We recommend deciding on a beneficiary or beneficiaries before purchasing a Final Expense Plan; that way, you can go into the process confident with who will receive your plan’s benefit. If you need to, you can always change your beneficiary regularly during the policy’s life.
How much coverage do I need?
Like the question above, this one also has no clear answer. The people we are trying to protect and the financial needs that come with them differ from person to person. Before applying for the Final Expense Plan, it’s best to identify all the immediate needs you want to ensure are covered to help determine your ideal coverage amount. Think about your funeral and the costs associated with that and any remaining debts that could be left behind. Or think about your family and their needs. Do you have grandchildren that you’d like to help with their schooling? Or do your children have homes that your benefit could help them pay down? Make a checklist of these needs and have them ready when speaking with one of our advisors; they can help identify the right amount of coverage based on your needs.
What do guaranteed premiums mean?
Guaranteed premiums simply mean that your premiums will never increase for your coverage. For as long as you own the plan, your premiums will remain the same, so you will never have a surprise premium hike. Guaranteed premiums make it easy to budget for your coverage because you always pay the same amount for your coverage for life. This aspect of the plan makes it simple to work your coverage into daily expenses.
Do premiums typically increase?
With traditional whole life and term life insurance plans, there are times when your premiums can increase. With a term plan, you can choose to renew your coverage once the selected term ends, but your premiums will also increase from what you paid previously. Whole life insurance plans go through review periods with the insurer after each year. After this review, your premiums can very well increase due to several factors, including your age.
How do I apply for the Final Expense Plan?
Our team has made the application process as simple as possible and much more accessible than most insurance companies on the market. To begin, simply fill out our short free quote form here on our site. Once that form is submitted, one of our local and licensed advisors will reach out to you and provide you with free no-obligation quotes for plans tailored to your unique needs and budget. If you are happy with your options, you can purchase your coverage right over the phone with our advisor. You never have to undergo a medical exam, fill out a mountain of paperwork, or meet face-to-face with an agent at any point of your application.
How can I use the cash value benefits my plan provides?
Cash value benefits are savings components attached to permanent life insurance plans. These typically work by taking a portion of your premium payment and put into cash value savings. Depending on the form of permanent life insurance you purchase, your cash value can earn interest over time, allowing it to grow more.
Depending on your policy, you can also access the cash value funds in different ways. You may be able to make a tax-free withdrawal from your policy, but this will reduce the death benefit of your plan. You can also borrow against your cash value, as well as use the cash value to help pay your future premiums.
It is best to check directly with your insurer to learn more about how you can use the cash value component of your plan before you make any decisions.