Life Insurance Options for Funeral Expenses

While the law does protect a survivor from inheriting the debt of someone who passed, the law does not provide assistance when it comes to funeral costs. This uncovered cost will be imposed directly on loved ones. Because of this, there are life insurance options that will protect your loved ones from such costs. Guaranteed acceptance life insurance is a great life insurance product, perfect for covering unavoidable funeral expenses, and you can find it as permanent or term life insurance.

Guaranteed Coverage

Guaranteed acceptance, also known as guaranteed issue life insurance, is the best suited for covering funeral expenses, although it can be used for other life insurance needs. And because it is guaranteed, even those individuals with serious health issues, can still obtain coverage. Other types of life insurance might disqualify people with serious illnesses and conditions, because of the great risk, however this isn’t the case with guaranteed.

If you are eligible to apply for guaranteed life insurance, you will be accepted. The only application requirements are that you cannot be terminally ill (this prognosis must be declared by your doctor), and the second requirement is that you fall within a certain age range. It can vary depending on insurance carrier but it is typically 50–85 years old.

No Exam

When applying for a guaranteed issue life insurance policy, you will not be asked any health questions or be required to take a medical exam. The only thing that sets you apart from everyone else applying is age. Guaranteed life insurance rates are calculated using the same formula, regardless of health. The only piece of information that has an effect is the age of the person when the policy was put into force.

Rates

Guaranteed issue life insurance is a type of whole life insurance, in that it includes a cash value account. This account grows through premium payments and interest. The policy’s coverage can conclude, or reach “maturation,” by the cash value reaching the value of the death benefit. This happens when the insured outlives the policy, at which point the insurance company will pay the death benefit.

Most whole life insurance products are set up to mature when the policy owner reaches the age of 100. If a customer purchases a policy early in life, the rates will be lower than someone who is closer to 100, because the younger costumer’s account will have longer to reach maturation.

Because of its cash value and guaranteed acceptance, this type of life insurance product is expensive. It attracts high-risk individuals.