Even though final expense is a great insurance option, some people have concerns over the payout, pricing, and eligibility—but there’s an answer to these issues.
1) Low Payouts Compared to Other Plans
Like all life insurance plans, final expense provides a death benefit, or payout, to chosen beneficiaries upon the policyholder’s death. You can set the price as high or low as you choose to meet necessary costs, which will then influence how much you pay on a monthly basis.
On average, final expense payouts range anywhere from $2,000 to $50,000. This can fulfill plenty of necessary costs, such as funeral fees and small remaining debts.
However, compared to other life insurance policies, this payout is relatively small. Term and whole life insurance death benefits can range anywhere from $10,000 to over one million dollars. One concern about final expense policies, then, is the comparative smaller payout.
2) The Cost to Payout Ratio
Another concern over final expense policy is the month-to-month cost compared to the payout. The average premium for final expense is $30-$100 per month, while the average whole life premium is $25-$50.
3) Meeting Eligibility Requirements
All insurance plans have certain qualifiers required for coverage. For final expense, in particular, some people worry about disqualifiers such as pre-existing conditions. But, while some providers do use medical underwriting to determine eligibility, not all of them do.
Why These Concerns Shouldn’t Worry You
Final expense plans are, in fact, known for their easy eligibility, especially compared to other life insurance policies. You should not have to worry very much, then, about meeting eligibility requirements.
The comparatively low payout also makes sense considering this factor. Because final expense is so easy to qualify for, most people who purchase them don’t expect to need a long-term plan that builds up more funds over time.
Most final expense plans last roughly 5-20 years. Whole life, as the name implies, is a permanent policy. With this in mind, the higher premium makes perfect sense—you’re essentially “making up” for the payout in a shorter amount of time.
So, while all of these concerns are justified and important to consider when choosing a plan, they shouldn’t turn you off from it. These points are reasonable, and, with the right help, you can find a great final expense plan that addresses these concerns.
Questions? Call Final Expense Direct
There are a lot of life insurance providers in Houston. Having that many options is great for finding the best-priced coverage, but it can be overwhelming. You need, then, someone to guide you through the insurance world.
With Final Expense Direct, your needs matter. We won’t rest until you are comfortable in the best life insurance policy on the market, because you’re an individual with individual needs. We’ll find coverage for you. When you’re ready to get started, give us a call at 1-877-674-0236.