While it is a tough time for family and friends who lose a loved one, an insurance agent can make the loss a little easier by providing quality and affordable service. Agents who sell final expense insurance, such as of www.finalexpenseleads.com, will want a first-rate list of prospective clients.
According to the National Funeral Directors Association (NFDA), consumer interest in preplanning funerals has been steadily rising for the past three decades, with much interest on pre-funding these services. Final expense insurance is put to use as an alternative to life insurance, offering different benefits. The popularity of burial insurance has increased in recent years as individuals and families look for both a dignified and affordable way to deal with the inevitable.
Right now, the cost for the plot, clothing. funeral & burial expenses averages between $6,000 -$10,000.
Final expense insurance, also known as “burial” or “funeral” insurance, is a life insurance policy with a low face value, such as $5,000 to $50,000, that you buy directly from an insurance company.
Since final expense insurance covers something that no one can escape, when a consumer obtains this type of policy, insurers know the client will use it at some point. With that being the case, insurance companies will charge accordingly. And, unlike life insurance which gives the policyholder a large lump sum to distribute as they see fit, final expense insurance only covers costs related with the burial.
Final expense policies are typically either “term life” (which covers a specific time period or until a certain age, then expires) or “whole life” (which covers a person for the rest of their life). These are generally either “simplified issue” policies, which requests limited medical information but doesn’t mandate a medical exam, or “guaranteed issue,” where the policy is issued to anyone who applies with no medical questions asked.
People who have a serious health problem may receive a policy with a “graded death benefit,” which means the coverage amount increases over time and beneficiaries won’t receive the full face value if someone dies within the first few years of the policy.
Any life insurance policy can be used to pay for a funeral. A person can buy any term or whole life policy and instruct their beneficiary to use a portion or all of the death benefit for funeral expenses. Standard term and whole life policies, however, aren’t offered in low face amounts like $5,000, which is why final expense policies are important for individuals who need to cover their funeral expenses only. Regardless of the type of Insurance selected to cover final expense, these individuals want to make sure their Final Expenses are taken care of and that their loved ones do not have to have to deal with it when the time comes.