Final expense and traditional life insurance offer greater benefits to your loved ones than what your own savings can do alone. But they are marketed differently, and this can create questions as to whether one is better than the other. Both are great policies, but you can decide which is right for you when taking differences into consideration.
How Does Enrollment Work For Final Expense And Traditional Life Insurance?
One notable difference between final expense and traditional life insurance is the enrollment process.
Life insurance enrollment involves the company assessing the risk of insuring you. This is why life insurance has a medical underwriting component, as it allows them to get an idea of what health problems you may potentially have.
Traditional life insurance often requires a medical exam. You’ll also be asked about your lifestyle and medical history. If there is anything indicating a shorter life expectancy, you may pay higher premiums, or not get the policy at all.
Final expense insurance has an expedited enrollment process because there is no medical exam. You will most likely answer a simple medical questionnaire, or not answer any medical questions at all, depending on the type of final expense policy you enroll in.
Who Do These Policies Appeal To?
Final expense insurance has a narrower target demographic than traditional life insurance. This is partly due to how they approach individuals at higher insurability risks.
Traditional life insurance is ideal for those thinking far ahead into the future. The further you are from the end of your life expectancy, the lower your premiums will be, which translates to being able to provide a larger lump sum to your loved ones without sacrificing a major portion of your income.
Final expense insurance is much more inclusive. It allows individuals as old as 80 to join, as well as those in poor health conditions who do not qualify for traditional life insurance.
Why Is One Easier To Qualify For Than The Other?
The reason why final expense is easier to qualify for, and why the premiums are relatively low is because of a lower death benefit.
Your insurer is taking a financial risk when issuing a policy. In the case of a traditional life insurance policy, this could mean dispensing hundreds of thousands of dollars with little compensation from premiums.
Final expense policies don’t have a death benefit beyond $50,000. And since many purchase just enough to cover funeral expenses that range from $7,000 to $12,000, the insurer won’t risk anywhere near the same loss as they would with a traditional life insurance policy.
Your Best Choice Is One Call Away
At Game Changing Benefits, we will find you the best life insurance policy for your needs. No matter where you are in life, there is something for you, and you will never have to worry about not being able to make a strong positive contribution to your loved ones. Call us today at 972-331-1060 to learn more about your future policy.