This is a common question because the chances of obtaining a life insurance policy get slimmer as you age. Many companies reject applicants because of being at an advanced age. While final expense insurance has a maximum age in the majority of cases, it is very generous considering what its age range for eligibility is.
Age limit for joining
Final expense insurance is available to individuals starting at 45 to 50 years of age. The age maximum for most companies is 80, though some allow individuals to join up until they reach 85.
This wide range ties into the policy’s general-purpose, which is to provide loved ones with a death benefit that covers funeral costs (this is also why some refer to final expense insurance as burial insurance). This is reflected in the death benefit amounts because they range between $2,000 to $50,000. Funerals often cost between $7,000 and $12,000, so the death benefit will cover a great portion of it at minimum.
Another reason for this limit is the life expectancy. This maximum age, whether it’s 80 or 85, is beyond the average life expectancy. According to the CDC, the average life expectancy is 78.7 years. Despite the age maximum, the majority of the population will be in their final years by the time they are able to get the policy at the latest possible time.
Joining at the age maximum is no guarantee that your loved ones will receive the death benefit stated in your policy. You may acquire a guaranteed issue final expense policy at this time, but with that, you will have to wait an additional two to three years before your policy goes into effect. While the benefits won’t begin, your premium payments will.
Your premiums will be higher compared to others because overall, the cumulative amount you will pay over the course of the waiting period will be enough for the company to issue the death benefit without doing so at a loss. Also, you will only qualify for a smaller death benefit as opposed to someone who has joined sooner. The highest possible amount for a death benefit depends on the company you purchase your plan from.
Age limit for policy to be active
There is no limit here because a final expense policy covers you for life as soon as you join it. This is in comparison to other forms of insurance like term life, which has an expiration and requires renewal.
What makes final expense insurance appealing is that its costs and benefits will always be the same as long as you pay your premiums. Your rate never goes up, and your death benefit never goes down.
We have no limits
We at Final Expense Direct strive to help you in your journey to make sure everything (and everyone) is taken care of so that you can feel at peace. We can help you attain a policy that allows you to tie all loose financial ends and get what needs to be done on your terms. Call us today at 1-877-674-0236.