Guarantee Issue life insurance is a type of Final Expense that tends to be the last resort for individuals who can’t qualify for life insurance because of their current or past health problems. The insurance company will offer to the applicant regardless of health.
In 2014, the National Funeral Directors Association calculated the national median cost of a funeral to be $7,181 — or $8,508 with the inclusion of a vault (usually required by a cemetery). But most people are not prepared for these kinds of expenses.
Also known as burial insurance or end-of-life insurance, a Final Expense Plan is an insurance policy that helps cover medical bills and funeral expenses facing a family after a loved one’s death. There are three main types of Final Expense policies:
• A single-pay funeral trust plan = For people who choose to put a lump sum into their plan.
• A simplified-issue level and graded plan = For people who want to pay over time. (This is the most popular type of policy.)
• A guaranteed issue plan = For people whose health issues disqualify them for coverage with a simplified issue plan; this type of policy has a much lower coverage cap.
These options cost less than traditional insurance, and can be an affordable option for people on a fixed budget — such as seniors who want to plan for their end-of-life expenses.
Most importantly, a Final Expense plan enables a client’s loved ones to handle funeral costs, medical bills, and any other financial obligations during a highly emotional time.
Why Agents Offer Final Expense Plans
Just as Final Expense Plans aren’t the best fit for every client, they aren’t always the best fit for Agents. Consider these questions:
• Are these plans beneficial for the people in your community and the areas you serve?
• Do you offer similar/competitive products?
There are many compelling reasons to offer Final Expense Plans, such as:
• You can help families with some of the most difficult decisions of their life
• You can provide your clients with peace of mind, as they will know they have a health plan behind them
• You’ll be serving the needs of your clients and community
• You can offer a profitable product that will help your bottom line
How to Get Started with Final Expense Plans
If you decide to offer Final Expense Plans, we recommend talking to someone from the Medicare Advisors team of experts. They’ll provide answers to your questions, and have tools available to support your new product offering.
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