You can technically have final expense with another insurance policy depending on when you purchase each plan, your health, budget, and overall eligibility for coverage.
Final Expense Eligibility
To understand why final expense with another insurance policy may be limited, it’s important to consider the eligibility factor.
Final expense is significantly easier to qualify for than other life insurance policies. With a simplified issue policy, all you have to do is answer simple “yes” or “no” questions regarding your health. With guaranteed issue, it’s even easier—you can skip the medical questions altogether and sign up with almost no disqualifications. In other words, even if you are older and in poorer health, you can still get final expense.
Your Other Life Insurance Options
Compare this to the other two main types of life insurance policies you may consider purchasing—whole and term life. Bear in mind that final expense is a type of whole life, but whole life is a type of policy in-of-itself as well.
Whole life is just how it sounds—it covers your “whole life” until you pass away, then passes a death benefit along to your chosen beneficiaries.
Both whole and final expense policies are considered permanent, meaning that, as long as you keep up with your premium payments, you will be covered up until the moment you pass away. Whole life is unique because it is significantly larger than final expense, and much harder to qualify for.
Whole life death benefits are typically between $100,000 and up to $1 million or more. And, to enroll in a policy, you must be in significantly better health than with final expense, and much younger, typically younger than age 60.
Much of the same eligibility requirements apply to a term life policy as well. Unlike whole life, however, term life only lasts a designated amount of time before you have to either renew or drop it. Terms typically last 10, 20, or 30 years, with payouts between $100,000 and $500,000.
How You Can Have More Than One Policy
Having more than one life insurance policy depends largely on when you purchase each plan. If you want to purchase final expense and whole or term life at the same time, you will have to be at an eligible age and health for the stricter policy.
However, if you already have a whole or term policy that you purchased while eligible, your coverage with that policy will not change. Perhaps, however, you decide that you want an additional policy just to cover your funeral expenses. In that case, you will greatly benefit from an additional final expense plan.
Because it is much harder to qualify for whole and term life, it’s important that you purchase them while eligible—with one of these policies active, you may then choose to purchase a final expense policy later on as well.
Get The Plan You Need—Call Final Expense Direct
Final expense is a perfect life insurance solution for many—even if you already have a policy, you may benefit from adding final expense. To discuss your personal insurance options, call Final Expense Direct in Houston at 1-877-674-0236.