For most of us, the speed of time increases manifold with age. You are overwhelmed with the feeling that you may not be able to do everything you planned. For over 80% of Americans, the primary reason for buying insurance is the final expense or burial.
Are you pondering a final expense policy, but have a lot of questions? Here is the answer to all the questions you may have about the policy. This article also covers how you can compare policies and choose john Hancock final expense as a reliable end-of-life cover.
Understanding the Terminology
Final expense is also called burial insurance or funeral insurance. It is a whole life insurance plan with a small death benefit. Permanent or whole life policies are of high maturity, and you are unlikely to outlive them. Guaranteed acceptance is when the policy is underwriter regardless of your health condition.
The death benefit is the amount that the policy pays to your beneficiaries when you pass away. Beneficiaries are those who you list as those who will receive the amount upon your death. The waiting period is the time you need to wait while you pay premiums to be eligible to get the benefits of the policy. The waiting period can range from 24-36 months.
Qualifying For the Plan
To begin with, make sure that you qualify for a final expense plan. Most insurers need you to be at least 50 years of age to buy a final expense insurance policy. You can opt for a standard life cover with similar benefits and lower premiums if you are younger. Choose John Hancock final expense to get the lowest premiums in the market.
Usually, final expense policies provide a minimum cover of $5,000 and a maximum of $50,000. Most policies have a waiting period of 2 to 3 years. In case you pass during the waiting period, you will receive 110% of the premiums paid. So, you don’t lose money. Your premiums are low due to the small death benefit. The amount can be used to meet burial expenses or for any other purpose. Your family will get the entire policy amount.
The above features are the most common. Insurers also give additional benefits like guaranteed issue and paid-up benefits. A guaranteed issue plan is when you get covered regardless of any prevailing health issues. This is a boon for elders as they are more likely to suffer from age-related ailments apart from other diseases.
A paid-up plan ensures that you stop paying premiums after a stipulated age. The usual limit is set at 95 years. So, if you outlive the policy, you will not have to pay premiums after your 95th birthday. Your heir will still receive the policy amount when you pass.
Set A Budget
While final expense plans seem cheap, they should also fit into your monthly budget. If you have a terminal illness and may not live longer than the waiting period, it is illogical to buy a final expense cover. Instead, set aside the amount you would pay as premiums so that your loved ones can use it to meet your burial expenses. Also, a guaranteed issue will have higher premiums than a final expense policy. Make sure that the premiums justify the payout.
Don’t Hesitate To Shop Around
Insurers may coax you into buying a plan that benefits them more than you do. So, do not settle for the first plan you come across. Instead, explore your options to find the one that suits your needs. Check about additional fees and raiders that you don’t need.
It’s never too late to buy an insurance plan that can meet your loved ones’ financial needs. Rather than relying on guesswork, make calculated decisions. When you choose John Hancock final expense, you pick an A+ rated insurer to meet your end-of-life financial needs.