Final Expense Insurance for Realtors

In many cases, a Final Expense Insurance policy may be the best option to make sure our loved ones won’t be facing a life-changing economic situation caused by our death and the associated burial expenses. There is a common misunderstanding when it comes to the way people think life insurance works. It’s natural to think a life insurance policy will provide your family with economic stability once they’re no longer receiving your income. However, this isn’t always true. There is a big factor people ignore regarding their passing, and it’s usually their own funeral expenses.

Funeral expenses in America are likely to cost families around $ 8,000. An impressive amount, isn’t it? And many people don’t realize how much their families will be spending on other services associated with a funeral. No one ever opens a bank account or puts money in a jar with a label saying “For unexpected bills, my family will run into because of my death.” That’s why Final Expense Insurance is a great option to take into consideration regarding economic precautions for adult-age people.

How Much is Final Expense Insurance?

This is a matter of critical importance when it comes to life insurance. It’s a common mistake thinking that you’re not going to be able to pay your life insurance premium because it’s unaffordable. Nevertheless, that is far from true!

Not only are there accessible plans you will qualify for in order to cover your life insurance expenses, but you can select a death benefit low as $5,000 or as high as $1,000,000 depending on the premium you are willing to pay. But, it’ll also depend on when and under what conditions you decide to acquire a life insurance.

As it happens with other types of life insurance, in order to determine the cost of a Final Expense Insurance, underwriters will evaluate the following aspects about you:

• Health Condition
• Age
• Health History
• Gender
• Lifestyle

If you’re a smoker or a heavy drinker or like practicing extreme sports such as parachuting or skydiving you can expect your life insurance rates to be much higher than for someone with a conservative and modest lifestyle.

Nevertheless, if you make your decision at the right time and before any tragic circumstances have pushed you to look for insurance in a hurry, then you can probably get very affordable monthly rates.

Applicants who are under forty are likely to get a very affordable monthly rate of only $20 to $25 while others who may wait until later in life could be looking at a monthly premium of triple that amount because they will need no medical exam life insurance.

How Much Final Expense Coverage can I Purchase?

When you are shopping for final expense insurance, you should be very careful that you purchase a sufficient amount of coverage. If the main goal behind this policy selection process is to free your family from all extra expenses once you’re gone, then you’ll have to make sure your policy fulfills this purpose.

Believe it or not, there’s a considerable amount of Americans who are under-insured, and they don’t even know it! There’s an easy way you can determine how much coverage you need by adding the expenses your family will face without the benefit of your income.

1. This is the first number you should take into consideration is the total amount of your debt, and then add this amount to the standard funeral services expenses ($ 8,000)
2. Next, you have to be aware of your annual income. Keep in mind that it’ll be a tough decision if you happen to be the main source of income for your family and they suddenly stop receiving that amount of money per month. Try to look for a policy that allows your family to keep their lifestyle while they look for jobs that can replace all or a portion of your income.
3. Last but not least, you should consider any future expenses that you know will be coming around such as continuing with retirement planning and your kids’ education.

Once you have done the math, you’ll get an estimated number of how much your policy needs to cover in order to keep your family’s living standards while they recover from your passing little by little.

There are also other types of coverage that are more services-related, which include a ceremony, entombment or cremation of the body, limousines and flowers and everything related to a funeral and even unpaid medical bills and some legal fees that were left uncovered during the policyholder’s lifetime.

For Some Types of Final Expense Insurance, There is No Waiting Period

Most of these policies don’t have a waiting period, so if something happens the day after you decided to acquire a policy, your family will be able to receive the benefits right away, especially when you’re in good health. On the other side of the coin, if there is a serious pre-existing medical condition, there will most likely be a waiting period of generally two or three years. However, once the waiting period is over your family will be able to receive the full death benefit if you should die for natural or accidental causes.

The Bottom Line

The bottom line for Realtors who intend to cover final expenses, there is a wide range of precautions you can take in order to assure your family will be alright if you were to pass away. But a Final Expense Insurance policy is one of the most practical, affordable, and simple ways to provide financial assistance to your surviving loved ones.