We've all seen the commercials on TV with Alex Trebek telling senior citizens that they can cover the cost of a funeral with a life insurance policy. But what kind of insurance is it and how much will it cost?
Usually, final expense coverage is a whole life policy, which is the most expensive type of life insurance because it builds some cash value. But do you really care about building cash value to pay for a funeral? Probably not. The main concern is covering the cost of a funeral while making sure your premium doesn't increase.
In the case of our friend, Mr. Trebek, he says that you can't be turned down. That's a good thing if you are in poor health, but being "guaranteed issue" also means that the additional risk to the company is being passed on in the cost. Generally speaking, "guaranteed issue" costs more.
If you are in good health, there is a better and more affordable alternative. Guaranteed Universal Life (GUL) typically runs about a third less and the rate is also guaranteed to never go up as long as you pay your premiums. The GUL may ask for a paramed exam to qualify buy this lowers the carrier's risk, which in turn lowers your price.
If you're looking for a way to cover the expenses of a funeral, let us help. Contact Surf Financial Brokers for information.